As Brexit Nears And Boris Johnson Enters Office, Bitcoin As A Safe Haven Flourishes
- Bitcoin is becoming more popular in Google Trends in Britain.
- Cryptocurrency could be a hedge for the issues involved with Brexit and the challenges of Boris Johnson becoming prime minister.
Political changes in the economy have a big impact on Bitcoin. Bitcoin offers a freedom that isn’t controlled by any single entity, and the restriction of these freedoms can greatly influence the people that end up investing in the industry.
Now, it appears that the implementation of Brexit and the entry of Boris Johnson as prime minister are making an impact in England. Reports from Google Trends show that the term “bitcoin” is gaining more popularity in searches, rising to the highest levels in the country in over a year.
Johnson has already expressed that he doesn’t plan to cooperate with Brussels, and ultimately “no-deal Brexit” would likely be the fate, failing other option, even though other politicians have warned that this stance would be a disaster. Realistically, with all of the years of division and infighting, the damage has easily been doled out already.
This situation has clearly been concerning for the economy, as the GBP has seen a dramatic fall this year. In the last six months alone, sterling has lost 7% of value against the US dollar. This week, it reached a 12-month low, dropping down to $1.238.
Right now, the idea that Britain will see better days is not exactly a priority. Instead, much of the attention is on the likelihood that the exit from Britain will likely happen with no trade deal in sight. Still, the European Commission is remaining confident in President Jean-Claude Juncker, making sure Johnson knows that it won’t be giving into demands for the withdrawal agreement to be renegotiated.
Even with fear-mongering reaching an all-time high, the country won’t exactly reach a stopping point. People still have to eat, businesses will likely continue, and the world will keep going. Even though the search for Bitcoin is pushing up higher around the world, the only place that appears to be higher than usual is Britain.
Whenever economic issues arise, people look for ways to hedge the effects on their own finances. Considering that Bitcoin can be used globally as a currency, it may be a good alternative for consumers that want to get through this difficult time, and Britain isn’t the only country to turn to it.
Other countries that seem to be sweet on Bitcoin are ones that are sanctioned by the US. Venezuela, for example, is using BTC in their payment of aeronautical taxes. Iran, China, and Russia are also interested in cryptocurrencies, considering the way that Bitcoin appears to be the saving grace for many other areas of the world that want to be a little more protected from issues in the economy.
Presently, the cost of Bitcoin is $9,471.07, dropping by almost 4% in the last 24 hours. Perhaps, as the changes get closer, Bitcoin will again rise above $10,000.