Posted 2 years ago | by Ben Armstrong
Bitcoin Trick or Treat
On Halloween this year, there may be a treat in store for Bitcoin. October 31st, 2019 is the set date for a "no deal" Brexit where the UK will depart from the EU without an official agreement.
UK Prime Minister Boris Johnson is very committed to leaving the EU on that date even if there is no deal. Former UK PM Theresa May's deal was voted down 3 times before Johnson took over.
The people of the UK would rather leave without a deal than be stuck in limbo for an extended period of time. The voting results from the May elections support that. The Brexit party of Parliament gained more members than any other party during the May elections while running on a no-deal Brexit platform.
If this does in fact happen, this will be a devastating blow to the EU. The UK contributes almost $3B to the EU budget each year. With those funds suddenly gone, there could be much turbulence in an already shaky EU. This could send shock waves across the world.
The turbulence in the UK itself could be much lower as Johnson has set aside about $2B to help with the transition. There are some unresolved issues such as what will be done to secure the Irish-UK border since neither country has affirmed it will take care of the border. Talks of a physical wall have been met with a lot of opposition.
So what does Bitcoin have to do with all of this?
It's simple. Over the past few weeks global events such as the US-China trade war have pumped up the price of Bitcoin while sending stocks plummeting. One of the factors in this global uncertainty has been the fear of a no-deal Brexit. If there is no extension or deal cut before Halloween then everyone's will be realized.
CEO of blockchain firm CommerceBlock, Nicholas Gregory, believes that this will fortify Bitcoin's place on an unstable global stage:
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.
As many people have started to turn to Bitcoin as a safe haven in a world of financial uncertainty, Bitcoin could be sent to new and unprecedented prices. Some have even suggested that the UK could turn to crypto-friendly regulation as a hedge against the uncertainty a no-deal Brexit would bring.
To see more on this story and others, make sure to check out today's BitBoy Crypto News video: