Bitcoin and other popular cryptocurrencies are now becoming prevalent as the social media giant Facebook and financial institutions are pushing bitcoin and cryptocurrencies toward the mainstream. In addition to that crypto analyst and researchers have also predicted that Bitcoin will touch high of $10,000 mark and the mark will act as the psychological limit. Increased volatility and uncertainty in traditional stock markets and currency markets along with the greater accumulation of Bitcoin are some of the key factors that may help Bitcoin to rise significantly.
Moreover, U.S. Democratic presidential hopeful Andrew Yang has also dragged bitcoin into the national conversation which made the startups of Silicon Valley take a keen interest in Bitcoin and other digital currencies. It has also been believed that Bitcoin and other major cryptocurrencies can be the safe haven or ideal investment vehicle for the investors to park their money especially in time of crisis.
Now, let’s have look at the current state of Brexit. Boris Johnson, former London mayor, and diehard Brexiteer is likely to become the U.K.’s next prime minister. According to British bookmakers, he would be prepared to leave the E.U. without a trade deal with E.U. if the current trade deal of Theresa May won’t be concluded. In addition to that, odds of Boris Johnson becoming the next prime minister are 85% which may result in the continuous downfall of British Pound as he would be carrying out the Brexit without any trade arrangement. E.U. leaders on the other side also said that the U.K. will be in big trouble and kicked out of the trading block at the end of October if the trade deal won’t work out. Some think that 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 said that “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.”
“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,” Brian Kelly, chief executive of investment management firm BKCM, told CNBC earlier this week after the social media giant Facebook announced the launch of their own cryptocurrency Libra. “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 U.K.’s uncertain Brexit. Bitcoin can definitely become the life savior for the investors.