The surging price of bitcoin could reach record highs in the coming months if the UK leaves the European Union without a deal.
The prospect of a no-deal Brexit has already caused the pound to slump against other major currencies, including the euro and US Dollar.
“A no-deal Brexit could see a massive and unprecedented breakout,” Nicholas Gregory, CEO of blockchain firm CommerceBlock, told The Independent.
“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.”
The price of bitcoin is notoriously volatile, however some investors are beginning to see it as a safe-haven asset. Its borderless and decentralised infrastructure also means it is less prone to the effects of a single country or market.
Nigel Green, the chief executive of financial consultancy firm deVere Group, recently called bitcoin a “flight-to-safety asset during times of market uncertainty”, claiming it is gaining a reputation as digital gold. Data collected by Bloomberg earlier this week appeared to reaffirm this opinion, with bitcoin’s price correlation to gold doubling over the last three months.
The current Brexit deadline for the UK to leave Europe is set for 31 October, 2019. UK Prime Minister Boris Johnson, has consistently claimed that Brexit will happen by 31 October, with or without a deal.
Sven Franssen