No-Deal Brexit will be a Boost to Bitcoin

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In the past few weeks, Bitcoin has been on the rise again for its own internal reasons, but also because of financial uncertainty across the globe. The US and China are currently waging a trade war which is wreaking havoc with investor confidence.

Moreover, there are concerns about financial policies with the US Federal Reserve and the European Central Bank cutting interest rates, China attempting to strengthen its currency through other monetary policies. 

These concerns have pushed people towards Bitcoin as a global hedge, and now, in the UK and Europe, there is another factor building that could boost Bitcoin. Brexit has been hanging over the UK and Europe for years now, but with a new prime minister at the helf from Britain, things could be on the move. 

There is growing talk of a No-Deal Brexit which would mean a straight cut for the UK from the EU, which would also lead to huge financial uncertainty as the country and the Union try and find their feet. 

This has led to Nicholas Gregory, CEO of blockchain firm CommerceBlock, predicting it could have a massive effect on Bitcoin’s place in the global economy, driving more investors to the potential safe haven.

Turmoil and volatility

The new UK Prime Minister, Boris Johnson has said that the UK will “do or die” leave the European Union on the deadline at the end of October.

According to Gregory:

“Not only will a no-deal departure from the EU create turmoil and volatility across two major fiat currencies, it will also trigger an identity crisis for the global system as the contingency and vulnerability of major global fiat currencies is laid bare.”

He added: 

“Bitcoin has rediscovered its mojo this year with multiple mini surges but a no-deal Brexit could see a massive and unprecedented breakout,”

Another option

The fact of the matter is that Bitocin and its system of finance is not tied to any political entity, or even a geopolitical zone. This means that the digital decentralized currency often works in reverse correlation to the happenings outside its realm.

The recent price break out back to $12,000 has been directly linked to the uncertainty in the US and China, and it makes sense that Brexit could cause more uncertainty. Because of this, and the ever increasing scarcity, investors could flood to the market. 

If there is this boom in interest in Bitcoin as an alternative option for investing, then the demand will sky rocket as the supply continues to shrink. Because of this, the market price of the currency will likely sky rocket, and that price spike will in itself attract more investors - compounding the effect. 

To provide more evidence of Bitcoin’s demand in times of faltering money systems, in Venezuela and Zimbabwe, where their currency has been inflated by ridiculous margins, the price of Bitcoin runs at a premium as the demand is that much higher.

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