The primary reason why Bitcoin was made by Satoshi Nakamoto was because of the 2008 financial crisis. The goal is to have a currency that is independent from a state. It has a decentralized nature that allows confirmation of transactions without the participation of a central bank.
Unfortunately today, a lot of cryptocurrencies are now available in the market. And until today, despite the crypto winter, there are still countless cryptocurrencies out there that actually don’t have any use.
But 10 years since the creation of Bitcoin, it has been proven that cryptocurrencies have become the alternative to countries that are suffering from economic problems. Dash, for instance, has gained adoption in Venezuela since the country has been experiencing hyperinflation. In addition to this, Venezuela also made use of blockchain technology in order to circumvent the US sanctions.
Brexit and Bitcoin Price
Recently, a fintech company that is known for its Hybrid Intelligence for asset management has released a report that tackles the possible effects of Brexit on crypto price. Cindicator started posting a number of open questions since March 14. It was able to gather answers from 120,000 financial analysts who are registered in its Collective Intelligence Platform.
And the result was that the majority of the financial analysts are actually optimistic regarding the current state of crypto despite a bear market, not to mention the Brexit. In fact, 62% of these financial analysts believe that this will have an impact on crypto price. 74% of the analysts are also looking to hold cryptos as part of their portfolio along with other assets such as stocks and commodities.
Now, there are those who believe that Brexit could have an influence on the regulatory landscape that pertains to cryptocurrencies. Based on their numbers, 44% believe that Britain will be more pro-crypto after Brexit.
There has also been a report that there is a possibility that Ireland is going to be the next crypto hub in case Brexit pushes through.
As for a worldwide consensus when it comes to crypto regulations, the industry is a long way to go. In the US, the US Securities and Exchange Commission has only considered Bitcoin and Ethereum not as securities. As for the rest of the other cryptocurrencies, the rest of the altcoins are in a grey area whether or not these coins are considered commodities or securities. And for this reason, adoption has not really been fast. A Bitcoin ETF still hasn’t happened due to the fact that there is a lack of surveillance tools. According to the SEC, there is a great chance of price manipulation because of this.
According to experts, the price of Bitcoin is holding on at $4,000 position mainly because of the growing anticipation to the Brexit. However, the British pound has lost 0.2 percent against the US dollar. Could it be possible that Brexit is actually good news for Bitcoin and the rest of the other cryptocurrencies? Considering Bitcoin’s peak in 2017, it is a long way to go to regain its former position. However, it is a good idea to note that Bitcoin has increased by more than 20% since its dip last December.