Cryptocurrency value

Bitcoin Price: No-Deal Brexit “Will Cryptocurrency Value Hit All-Time High” | The Independent

Bitcoin’s price spike could hit record highs in the coming months if the UK leaves the European Union without a deal, some cryptocurrency analysts say.

The looming prospect of a no-deal Brexit has already sent the pound plummeting against other major currencies, including the euro and the US dollar.

Meanwhile, bitcoin has seen a resurgence in recent months, rising in value by around $4,000 since late June to its current price of $12,000.

It is still a long way from its record high of $20,000, which it hit in late 2017, but experts believe geopolitical uncertainty could push it past that point before 2020.

“Bitcoin has rediscovered its mojo this year with several mini surges, but a no-deal Brexit could see a massive and unprecedented breakout,” said Nicholas Gregory, CEO of blockchain firm CommerceBlock. The Independent.

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

Bitcoin’s price is notoriously volatile, but some investors are beginning to view it as a safe-haven asset due to its limited supply.

Its borderless and decentralized infrastructure also means that it is less prone to the effects of a single country or market.

Nigel Green, chief executive of financial advisory firm deVere Group, recently called bitcoin “a flight-to-safety asset in times of market uncertainty,” saying it is gaining a reputation as digital gold.

Data collected by Bloomberg earlier this week appeared to reaffirm this view, with bitcoin’s price correlation to gold doubling over the past three months.

Bitcoin’s value rose from around $3,000 to $12,000 in 2019

(CoinMarketCap)

This has been facilitated by other geopolitical uncertainties in the form of growing trade tensions between the United States and China.

“Gold, the traditional safe-haven asset, has benefited from some of this investor uncertainty,” said Simon Peters, analyst at online trading platform eToro. The Independent.

“Yet bitcoin also appears to have served a similar purpose. Given that Chinese investors make up a large portion of crypto investors, there is a good chance that some will support bitcoin’s odds against the yuan.

The current Brexit deadline for the UK to leave Europe is 31 October 2019, although previous dates have been pushed back due to Parliament’s failure to agree on the deal brokered by the UK. former Prime Minister Theresa May.

Boris Johnson inspects an ambulance during a visit to Boston’s Pilgrim Hospital

(AFP)

His successor, Boris Johnson, has always maintained that Brexit will happen by October 31, deal or no deal, with some warning it could spell disaster for the UK and wider global markets.

Carolyn Fairbairn, director of the Confederation of British Industry (CBI), said in a recent editorial in the FinancialTimes that a no-deal Brexit would be a “trigger wire in the economic chaos”.

If true, Gregory says bitcoin’s place in the global economy could fundamentally change.

“In 2020, we expect an increasingly populist and politically unstable world to cement the safe-haven status of bitcoin and other cryptocurrencies more generally,” he said.

“And if central banks start to increase money printing again, the case for cryptocurrencies like bitcoin that are capped in supply will be further strengthened. Each time a central bank increases the money supply, c This is another nail in the fiat’s coffin.

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