Brexit is not only a big topic to the residence of the United Kingdom but the whole world at large. At present, many economic experts are debating about how the lives of common citizens will be affected, and how much the world economy will be affected by the exit of Great Britain from the European Union. However, despite the numerous topics that surround the Brexit, this article is going to focus on Bitcoin and what will happen to the crypto asset.
According to data compiled by Cindicator, it is estimated that about 62 percent of crypto analysts believe Bitcoin will perform positively in the crypto market after the Brexit. Also, the analysts believe that Brexit will boost the rate of virtual assets around the world, as 74 percent of the respondents interviewed consider holding virtual currencies in their financial portfolios. It is imperative to note that Brexit is a highly contentious matter that has unclear implications.
Cindicator is a reputable fintech company that provides hybrid acumen solutions for effective asset management by decentralizing the analysis of financial markets.
Following previous world economic happenings, it is evident that Bitcoin and the entire crypto market output thrives in times of economic turmoil. As Brexit promises to affect capital funds of the United Kingdom’s government and its economy in general, especially in gaining access to cross-border markets, it is more than possible that people will result in cryptocurrencies such as Bitcoin.
Also, as per an emerging trading education platform Learn 2 Trade, individuals might turn towards the virtual coin as a hedge against the depreciating Great British Pound’s value and its usefulness in international transactions.
UK’s unruly withdrawal from the EU and the political conclusions that have been associated with the move does not appear to end anytime soon. Investors of the number one crypto asset, Bitcoin are among the best-positioned individuals to benefit from this chaos.
Across August and early days of September, the British pound and equity markets have been witnessing some turbulent sessions. Both the Sterling Pound and the FTSE 100 depreciated in August as the 31st October Brexit deadline approached.
Despite the August’s negative performance, both the Sterling Pound and the FTSE 100 have since recorded upward price movements after PM Boris Johnson ordered Parliament to adjourn. Boris calls for Parliament to be adjourned for a month is intended to prevent members of parliament from slowing down the Brexit process.
Many investors who appear to have been frustrated by the uncertainty of the past few months welcomed the Prime Minister’s bold move towards clarity even though it meant the UK could exit the EU without a deal.
In August, former Chancellor of the Exchequer who served under Theresa May, Philip Hammond, predicted a massive economic downturn from UK’s crashing out of the EU without a deal. According to Philip, 87.7 percent of the country’s GDP is set to be affected by the repercussions of the move and an 80 billion Sterling Pound black hole in taxpayers money.
The situation is so bad that the Bank of England also painted a negative picture of the situation reducing its GDP prediction for 2019 to 1.7 percent from its previous 1.8 percent prediction.
Although British citizens currently do not trust virtual assets and Bitcoin that much, research shows that interest in the emerging crypto industry is on an all-time high.
According to the CEO of blockchain company CommerceBlock, Nicholas Gregory:
“Bitcoin is rediscovering its mojo this year following its series of mini surges that the number one coin has managed to record. However, a no-deal Brexit could commence a massive and unprecedented price surge.”
“Not only will a no-deal exit from the European Union create economic chaos and unpredictability across two major physical currencies, but it will also cause an identity crisis for the global network as the eventuality and liability of major global currencies are laid bare.”
Similar to other crypto assets, Bitcoin prices are notoriously unpredictable. However, a section of investors sees the virtual asset as a viable safe-haven asset going by its finite supply. Bitcoin’s borderless and decentralized nature acts to its advantage in that it positions it to be less attached to the effects of a single market or country.