Brexit Gets Half a Year Delay, Cryptocurrency Market Responds to Postponement
The cryptocurrency community and the European Union have responded to the Brexit delay by a staggering six months, a move that could still keep Britain in the European Union until 2019 Halloween, according to reports published April 12, 2019.
Price of Bitcoin Reacts
When the then Britain's Prime Minister James Cameron decided to seek a referendum, asking his fellow countrymen if they would love to stay or leave the European Union, most of them voted in support of leaving the Union, a move that started the word Brexit.
But the technicalities that would be adopted before leaving the union has created a tremendous political hole that is even threatening to swallow the current Prime minister, Theresa May.
While the process has spanned years, the last several weeks have been very critical and essential in shaping the nature of the UK's exit from Europe.
In March, despite months of analysis and deliberations and several analysts saying otherwise, the UK appeared headed towards a No Deal Brexit, a move that would have created for an abrupt transition.
A Bleak Future for Cryptos EUR and GBP?
The future is not looking bright for both the UK and Europe should the United Kingdom leave with a No Deal Brexit.
One of the areas that will be of grave concern is the value of both the fiat currency, as well as bitcoin and altcoins.
Analysts are of the opinion that the situation could be disastrous for both parties, as it would lead to massive inflation for the British pound sterling and a general drop in confidence for both the UK and the EU currencies, which would likely lead to a decline in the value of the Euro.
A Crypto Solution
With the cloud of uncertainties shrouding around both the UK and EU, financial experts firmly believe that cryptocurrency should rightfully replace the GBP and the Euro since both will be negatively volatile and create a lot of problems due to the present situation.
Boosting the confidence of the analysts is the fact that the cryptocurrency market took off on an explosion that saw the price bitcoin rise over 30% in a week, a situation they are confident will be maintained for quite a while.
While some are seeking to replace both the GBP and the Euro, others are of the opinion that cryptocurrency should be used worldwide, especially in countries that have a weak currency, as it will help to stabilize and regulate their economy, thereby pushing most of them out of their economic misery.
The decision of the UK Parliament last week to vote against a No Deal Brexit has forced Prime minister, Theresa May to come to terms with a Brexit in a manner that included negotiating a road forward with the EU.
Brexit has been put on hold for now, providing May with the much-needed timeframe to convince the European Union leaders to push back the UK's exit till the end of October.
The cryptocurrency market predictably responded to the latest development, with bitcoin crashing by 5% and an overall decline in valuation for crypto after weeks of bullish price movements.
However, Pinda Wong, Chairman of Verifi and a member of the advisory board of Coindesk believes that there is a blockchain solution to Brexit, a move he believes will be beneficial for all the parties involved.
It does not matter where the pendulum swings, Brexit would not fall through without a casualty or two, or else a radical solution is agreed upon very fast by all the parties involved.
However, no matter what the final outcome may be, the fact still remains that bitcoin and other cryptos are here to stay.