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Let’s have look at the current state of Brexit and its connection to Bitcoin. Boris Johnson, the former London mayor and a diehard Brexiteer, is likely to become the U.K.’s next prime minister. According to British bookmakers, he would be prepared to leave the European Union without a trade deal with the EU if indeed the current trade deal of Theresa May won’t be approved.
In addition, odds of Boris Johnson becoming the next prime minister are very high which may result in the continuous downfall of the British Pound as he would be carrying out the Brexit without any trade arrangement. EU leaders on the other side also said that the UK will be in big trouble, getting kicked out of the European trading block at the end of October if the trade deal won’t work out. Some think that this could send the Bitcoin price even higher.
Looking at the current state of the Brexit, Nigel Green, chief executive of independent financial advisory group deVere stated:
“We are already seeing that the U.K. and international investors in U.K. assets are responding to the Brexit-fueled uncertainties by considering removing their wealth from the U.K. One such way that many are looking to diversify their portfolios and hedge against legitimate risks posed by Brexit is by investing in crypto assets, such as bitcoin.”
Another similar opinion regarding a rising Bitcoin price due to a no-deal Brexit has been expressed by Brian Kelly, chief executive of investment management firm BKCM, told CNBC after the social media giant Facebook announced the launch of its own cryptocurrency, Libra:
“What Libra is doing is creating a digital version of the U.S. dollar, yen, euro. It’s like a stable coin, but you still have all the characteristics of a fiat currency. Bitcoin is … digital gold. And, in my opinion, it’s probably a lot better than gold, but there is no trusted third party involved, and that’s a huge difference.”
Bitcoin is gaining popularity as ‘digital gold’ and it could become a safe-haven asset and ideal investment parking vehicle in times of crisis like the UK’s uncertain Brexit plan. Bitcoin can definitely become the life savior for many investors, who would seek an investment that is detached from the UK-EU mess.
Bitcoin Already Gradually Becomes More Mainstream
Bitcoin and other popular cryptocurrencies are now becoming more and more accepted as a legitimate currency as the social media giant Facebook and financial institutions are pushing cryptocurrencies toward the mainstream. In addition, crypto analysts and researchers have also predicted that when Bitcoin would cross the $10,000 mark, it will act as a break of a psychological limit.
Increased volatility and uncertainty in traditional stock markets and currency markets along with the greater accumulation of Bitcoin by institutional investors are some of the key factors that may help Bitcoin to rise significantly.
Moreover, U.S. Democratic presidential hopeful Andrew Yang has also landed Bitcoin in a public discourse which made the startups of Silicon Valley take a keen interest in Bitcoin and other digital currencies. It is also believed that Bitcoin and other major cryptocurrencies can be a safe haven or an ideal investment vehicle for the investors to park their money, especially in times of crisis.