A no-deal Brexit could see the price of Bitcoin surge past $20,000 and achieve a record high, as the vulnerability of fiat currencies is amplified through such a symbolic political event, according to the blockchain specialist, CommerceBlock.
In December 2017, Bitcoin hit its all-time high of $19,783 but the threat that a no-deal Brexit poses to the stability of both sterling and the Euro, coupled with its broader symbolism of the growth of populism and decline of political union and globalisation, are all likely to favour the cryptocurrency.
In 2019 to date, Bitcoin has been boosted and validated by a multiplicity of factors, from its role in major use cases across established brands like Microsoft and Twitter to, most recently, Facebook’s announcement of Libra.
The fact that 2019 was Bitcoin’s 10th birthday was another boost for the cryptocurrency, while in criticising Libra and Bitcoin in July President Trump gave digital currencies the supreme validation they needed.
Nicholas Gregory, CEO of the blockchain specialists, CommerceBlock, commented:
“Bitcoin has rediscovered its mojo this year with multiple mini-surges but a no-deal Brexit could see a massive and unprecedented breakout. 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. Come 2020, we expect an increasingly populist and politically unstable world to cement the safe haven status of Bitcoin and cryptocurrencies more generally. And if central banks revert to ramping up the money printing all over again, the case for cryptocurrencies like Bitcoin whose supply is capped will be further reinforced. Each time a central bank increases the money supply, it’s another nail in the coffin of fiat.”