Bitcoin Ecosystem Not Worried By Potential 'Brexit' Scenario
The world’s economies are in a very frail state as of late, ever since the most recent financial crisis took place. Some countries, such as the United States, have noted a small growth for the first time in many years, while others are on the brink of collapsing. Despite the outlook of a unified front, the United Kingdom could end up leaving the European Union. But how would this scenario impact Bitcoin, as traditional financial solutions are failing?
Also read: Bitcoin in India: ‘The Best Form of Money the Human Race Has Ever Experienced’
Effects on The EU Economy If A Brexit Would Happen
Later this year, a decision has to be made as to whether or not Great Britain will remain part of the European Union, or do its own thing. The way things look now, according to Telegraph UK, a Brexit is not all that unlikely to happen, although there would be a major impact on the UK economy for many years to come.
This news may come as a surprise to many investors and people active in financial markets, as this topic has been glanced over by just about anybody. However, the ramifications of a Brexit should not be underestimated, as the impact on the UK economy would be quite dire.
While it is important not to get ahead of ourselves, forecasts provided by Societe Generale indicate the camp is divided evenly on whether or not to remain part of the EU. As always, these predictions and polls need to be taken with a grain of salt, and are no guarantee for a result by any means.
The UK economy would not be the only party to suffer from a Brexit, as the Eurozone would take significant hits as well. The Euro’s GDP would be reduced by anywhere between 0.1% and 0.25% over the next decade. hampering potential for economic growth. It goes without saying that, as the deadline for a Brexit vote draws closer, financial markets will become very volatile. Both EUR and GBP assets could end up being liquidated at alarming rates, similar to what is happening in China right now.
Oddly enough, the looming threat of a Brexit is not at the top of the priority list for UK businesses. It is still too early to say whether or not this scenario holds any merit, and if so, its effect on 2016 prospects will be quite minimal. Growth slowdown across all of the UK is the biggest threat to businesses for 2016, combined with a potential rise in interests.
Britain is willing to avoid a Brexit, as long as certain conditions are met by the European Union. Among those suggestions is limited access to benefits for EU migrants moving to the UK, and protecting British interests from eurozone integration. A decision on those conditions will be made later in 2016.
Should the Brexit scenario become a reality, the UK will once again become a stand-alone economy. For some people, this might seem like good news, but it will also fractured ecosystem. Luckily for all parties involved, there is a simply solution in the form of a global currency anyone in the world can use.
Bitcoin Provides Global Financial Services
When it comes to popular digital currency Bitcoin, the question no longer is “why?” but rather “when?” Countries can no longer ignore the benefits offered by Bitcoin and the underlying blockchain technology. In fact, various major investors around the world have started diversifying their portfolios by adding Bitcoin into the mix.
Finance is a matter near and dear to all of our hearts, yet there are very few options when it comes to finding a way to transfer value to others that is not bound by banks or governments. Bitcoin offers a perfect solution to this problem, as it is decentralized, not issued by a bank, not controlled by a government, and not subject to inflation, unlike fiat currency.
Anyone who values their wealth would be best not to dismiss Bitcoin as another flash in the pan. The digital currency has been around for nearly seven years now, and has matured over time. Now that even major financial players are flocking to Bitcoin and blockchain technology, it is only a matter of time until global adoption is achieved.
What are your thoughts on a potential Brexit? Will it happen, and if so, will it impact Bitcoin? Let us know in the comments below!
Source: Telegraph UK
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