One of the important happenings in the world at present is the Brexit issue. The European Union used to boast of its strong community of European nation for many decades now. But in 2016, Britain held voting which went in favor of Brexit. Brexit is the process of taking the United Kingdom out of the European Union. This voting began a two years long process on the basis of “invocation of Article 50 of the Treaty on European Union” which ended recently on 29th March.
The UK Prime Minister Theresa May and the U.K. Parliament have mere nine days in hands to decide upon the fate of the country. Whether a country decided on NO-deal Brexit or stays with the EU, would determine the future of Bitcoin also. One analyst and content contributor to Forbes says that a no-deal Brexit decision will affect Bitcoin in no small extent.
No-deal Brexit is something the world would fear of – mainly the UK and the rest of the European Union. If Britain decides to go with no-deal Brexit, it would leave the EU on April 12 without making any negotiations, with an immediate effect. With no negotiations between two parties, the relationship between the UK and EU would be left in confusion. While Britain would move forward on its way, its economy and demographic status would change too. The world economy along with the new-gen form of money, cryptocurrency would get affected.
Not just that, but no-deal Brexit would lead to a huge disturbance in border flow between the UK and its fellow European countries. The disruption in trade, their cross-border demographic relation, economy and the freedom of travel would also get compromised to a large extent.
If this happens, the Forbes analyst said that the U.K. economy would have to suffer from hyperinflation. And usually, when the traditional economy is in trouble, cryptocurrency thrives. One prominent example is of South American countries like Venezuela and Argentina which have adopted cryptocurrency as a legal form of currency.
He also said, “Unemployment will rise, the already strained UK central bank will be forced to print cash,” and “Bitcoin will rise against the Pound.” He also said that it would be possible that rather than raising the value of Bitcoin against the British pound, the cryptocurrency will increase its value against the Euro.
When it comes to the world ranking, the UK is on the 5th position which shows its contribution to the world economy and the EU. If no-deal Brexit takes place, the Euro’s value against cryptocurrency might get reduced.