How Will Brexit Affect Cryptocurrencies?

Brexit's Effect

With Brexit continuing to spiral into possible chaos and uncertainty, what might the effect be on Bitcoin and other cryptocurrencies? According to market intelligence firm Cindicator fully 62% of analysts believe Brexit will have a bullish impact on digital assets and cryptocurrencies. Following that, 74% of all parties surveyed are considering adding cryptos to their portfolios. Normally when there is so much uncertainty investors flock to gold as a flight to safety, BUT now Bitcoin is also being considered as that safe haven.

Surprisingly, perhaps Bitcoin is just a much better way to store and protect against currency uncertainty (there is only so much gold you can put under your mattress). Of course there is one other option that could throw all predictions “out the window;” politicians just continue to grant extension after extension (kicking the can down a LONG road). No matter what, Brexit is a mess and that bodes well for both Bitcoin and Gold. More details below.

Bill Taylor/ Fintek Capital

“…Readers may be aware that British lawmakers are currently surprised by Prime Minister Theresa May’s essential re-submission of an agreement they had already rejected. The second failure of her proposal led to her resignation. The whole situation has got many in the British media and political circles reconsidering the entire notion.

There is a slight chance that the British government will just override the will of the people and remain a member of the EU. Most analysts think such an effort would fail to get the requisite support from members of parliament.

The economic impacts of Brexit have already been felt for years. Bank of England estimates that nearly 800 million pounds per week have been shed from the economy every week since the decision passed in 2016. During the same period, the British pound (GBP) has lost 5% against the dollar and 10% against the Euro.

It’s hard to tell whether the same impact would have been had anyway, as the pound constantly fluctuates against other currencies. However, a sustained loss in this range must have some reason behind it, and many respected economists believe the Brexit decision is the primary factor.

According to Cindicator, at least 275 finance companies have exited London, while many other firms are rearranging their European operations in preparation for an independent Britain. London remains one of the biggest financial hubs of the world, but its status could change if access to nearby European markets is affected by Brexit…”

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