Some analysts believe that the looming no-deal Brexit will push Bitcoin (BTC) price to an unprecedented breakout and record highs in 2019.
Nicholas
Gregory, CEO of blockchain firm CommerceBlock, even predicts it could
fundamentally shift Bitcoin’s place in the global economy, as reported by the Independent, Aug. 9.
Brexit already causing market turmoil
The
prospect of a no-deal Brexit has already caused the pound sterling to
lose value against other major currencies. Increasingly so, since the
appointment of confirmed Brexiteer, Boris Johnson, as U.K. Prime
Minister. Johnson has vowed that the United Kingdom will “do or die”
leave the European Union on Oct. 31, 2019.
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.”
This, some say, will preempt a capital flight to Bitcoin as a safe haven asset, causing prices to spike dramatically.
Geopolitically uncertainty and populism growing
Fears
from the Confederation of British Industry that a no-deal Brexit would
be a “tripwire into economic chaos,” make Gregory believe that Bitcoin’s
position in the global economy could fundamentally shift.
“Come
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 revert to ramping up the
money printing all over again, the case for cryptocurrencies like
Bitcoin whose supply is capped will be further reinforced.”
Nigel Green, CEO of financial advisory giant deVere has previously claimed that crypto-friendly regulation could be a lifeline for a post-Brexit U.K.
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