Markets have been reeling since news that Britain would leave the European Union. Britain represents the first country to leave the EU, and uncertainty about what’s to come has led investors into safe have assets, including gold, silver and Bitcoin.
While the Bitcoin price remains stable, amid what some are calling its big moment to shine, there does certainly seem to be correlation between global economic uncertainty and bitcoin’s price resurgences.
“Bitcoin has been perceived by many people as being in the same bucket as gold and other precious metals, as a hedge against uncertainty,” Toronto based lawyer Addison Cameron-Huff said. “I think it’s definitely a useful asset for diversification so perhaps there’ll be some interest on that side.”
He added: “In some ways Brexit mirrors Bitcoin in that it’s about decentralization.”
Could it be that Brexit is in the same spirit of decentralization that inspires bitcoiners everywhere. It certainly seems that way. Even Bernie Sanders, a skeptic of corporate power, seems to have sympathized just a little bit with brexit, stating “the global economy is not working for everyone” in response to the Brexit vote result. The office of the Prime Minister is in shambles as Prime Minister David Cameron has agreed to resign by this fall. Other cabinet members have followed. What Britain will do next remains vague.
While Brexit grasps headlines, discussions around bitcoin hint that people believe the digital currency, invented in 2008 by Satoshi Nakamoto, is a safe haven. That’s different than just about everything else as world markets see red. When Brexit results were becoming clear, Bitcoin’s price increased from $625 to $670 in just a few hours before settling around $650 and firming ever since.
Barry Silbert, CEO of Digital Currency Group, tweeted: “This is bitcoin’s coming out party as a global safehaven investment.” In reality, it’s been that way for awhile now. After Cyprus, Bitcoin reached record highs. Similar in the aftermath of the Greek debt crisis.
Addison-Huff believes Brexit will only embolden Bitcoin in The City.
“London was already a center for Bitcoin/blockchain development and I would expect that role to expand post-Brexit,” he told Bitcoin Magazine. “With less access to traditional financial markets in the EU, I’m sure there’ll be an increase in non-traditional markets.”