Are Political Changes in Italy Responsible for the Improvement of the Bitcoin?
There are some sources that believe that the recent strife in the Italian government is directly related to the rise of the value of Bitcoin. This connection is being called “Italexit,” and it has allegedly resulted in a new value of $7,500.
Bitcoin Gains and “Italeave”
There was a recent election in Italy on March 4th, which resulted in a hung parliament. As a result, there’s an economic dive in the country right now as citizens dedicate their money to United States and German bonds. As the crisis continues, the stock prices have significantly dropped, giving this rumored state the names “Italexit” and “Italeave,” which are based on the previous Brexit movement with Great Britain.
Banks in Italy are faced with major debts as their customers take their business away from their banks, giving a new debt rating that jeopardizes their ability to maintain their funds. This wouldn’t be out of character for current citizens, because it would be the exact same actions taken by Greeks in 2015. With global stock prices falling, along with the Euro, it may come as a surprise to some consumers that the cryptocurrency world has actually profited.
The top three digital currencies – Bitcoin, Ethereum, and Ripple – have all experienced a slight jump in their value. This may be due to Italian citizens moving their funds over to crypto wallets where they can be preserved, but there isn’t enough information right now to support that idea. However, due to the order of events from the political upset to the thriving of crypto, this notion shouldn’t be ignored.
Bitcoin Is Pitted Against Euro
The whole point of cryptocurrency is to offer a decentralized platform for consumers to reap the benefits of their investments. Ironically, the crisis in Italy began when he rejected the idea of a government that the population elects within decentralized Europe. Some people take this rejection to imply that the government doesn’t have the will of the people in mind, forcing them to conform to the decisions of the government alone.
When consumers invest in decentralized currency on platforms like Bitcoin and other tokens, the power is pulled from the local economy of those users. If the switch involves a large enough group, it could be interpreted as a type of financial protest. Consumers that believe that their government is in a failing state will want to pull their funds as quickly as possible to protect themselves, suggesting that Bitcoin may be used as a hedge against the Euro’s decline.
A journalist that suggested this connection even brought up the idea that there is no correlation at all. The timing coincides with the addition to Goldman Sachs to the crypto world, which is expected to be highly profitable.