One of the most discussed political events in Europe is Great Britain leaving the EU, although no definite solutions regarding the legal matters have yet to be set in stone thus far. Each interested party has tried to work out the best position in negotiations because they are aware that Brexit will likely have a significant impact, especially on the financial sector. Things look a little bit complicated and complicated is something investors do not like so much — the cryptocurrency market investors included.
The growth and popularity of cryptocurrencies could potentially affect many business segments. After all, the financial industry, and banking especially, is where it all started. Soon after, other industries noticed promising trends and adapted to the new realities. For instance, the gaming and iGaming sectors were among the leaders and one of the firsts to accept digital cash. However, many factors influence the cryptocurrency exchange, even more so than the traditional stock exchange. As a result, such a huge occurrence as Brexit, with all its implications, will likely take a toll on Bitcoin and the like.
It has been a while since British people voted to leave the European Union, yet the matter of how the government should handle certain regulations remains unclear. Even the referendum itself caused some serious fluctuations in the price of both crypto and fiat currencies. Prior to the “leave” vote, the cost of Bitcoin went through the roof, likely as a result of increased interest in Bitcoin investments supported by the expected fall in the value of the pound.
Eventually, the pound and Bitcoin took a price hit due to the decision regarding Brexit. But the actual departure, should it finally turn into a reality, could make crypto coins more desirable. The prolonging period of instability for the fiat currencies might incline involvement in more secure assets like silver and gold or even crypto coins. Regardless of the bear market for virtual money, their popularity did not slow down. However, soon enough the tables could turn again, with Brexit being a leading force for some major ups and downs, one way or the other. It will all depend on how the British government and the European Union deal with the difficult situation.