The Brexit grows closer by the day. At the same time, Bitcoin is recovering course of his past setbacks. The resistance range to the 8,000-US-Dollar mark seems to hold so far. What is the impact of Brexit on the Bitcoin exchange rate and the Blockchain can have Ecosystem?
By Phillip Horch
21. October 2019BTC$7.430,94 -8.17%part Facebook Twitter LinkedIn xing mail
moves During the EU exit of the United Kingdom-better known as Brexit – closer, also increases the price of Bitcoin. Accordingly, the largest cryptocurrency according to market capitalization in your course, the course was able to win in the last 24 hours, almost five per cent in strength. You can assume a connection?
What is the meaning of the Brexit for the Bitcoin course?
BTC is sometimes seen as a safe haven in times of crisis, however, at least as an alternative asset for challenging economic times. The idea is that when it is economically risky, it is advisable to diversify the Investment Portfolio a bit. As an independent, decentralized Asset of the crypto-currency offers. If you run out of here of increasing interest for a limited demand, would also impact on the Bitcoin price.
As a glance into the past shows, were accompanied by events, which led to political tensions, with a rise in the Bitcoin price. Accordingly, the price of Bitcoin rose, according to Peter Devries in „an Analysis of Cryptocurreny Bitcoin and the Future“ already by 15 percent, as the United Kingdom decided that, for the first time to the Brexit:
[The] Cryptocurrency is in such a Situation, because it is the only currency that you can buy quickly and sell and in addition in the world can use.
Here is the crypto-currency shows its strength as a Form of „digital Gold“. In the long term, so it is in relation to the Stock-to-Flow Ratio increases, the price of Bitcoin in a sustainable way. By way of an investment, a further assumption, one can protect themselves against economic crises. Similarly, Dr. Julian Hosp. sees the case Against BTC-ECHO he doubted, however, that the Brexit would have a direct impact on the Price development of BTC:
Any uncertainty in the market leads inevitably to the fact that people are looking for opportunities where you independent of Central institutions, such as banks, etc. your assets can keep. So I think that the Brexit, whether with or without a Deal – Bitcoin is an interesting is alternative investment for all Europeans. The influence now in the short term Bitcoin price, I do not believe, however, more likely that this, together with many other global factors of uncertainty with kicks in, which leads to a possible end-of-year-surge – something that I can imagine very well.
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Here you should, however, not to jump to conclusions. How to course on Bitcoin, not volatile BTC is only high, but also due to the short lifespan of BTC to reliable historical data. The Prof. Dr. Fabian Schär, managing Director of the Center of Innovative Finance at the University of Basel:
confirmed to us In the case of putative causal together, you should be hanging very careful. Firstly, these are generally very difficult, and secondly, the data basis is still too short term to be able to crisis effects on the Bitcoin price reasonable estimate. If the characteristics of the public block chains based crypto-Assets (like Bitcoin) leads in mind, however, it is quite conceivable that those in political and economic turbulent times, there could be a higher demand.
UK financial institutions to pull in front of Brexit fees – a Chance for Ripple
As a study of the payment service provider TransferWise shows, the financial institutions from the United Kingdom increased their fees drastically. The technology company the cost of international transfers in five currencies at the largest financial institutions of Germany was looking for. The result: A transaction of 1,000 euros to the UK is up to 25 percent more expensive than three months ago. The payment service provider Western Union has increased the average fee by 37 percent.
it Swings the attention away from the Bitcoin market price, could fall the interest first to the third-largest cryptocurrency by market capitalization – XRP. The Asset, which is closely related to the Californian FinTech companies Ripple together, focused on the international payments. The „Bankencoin“ of Ripple is finally designed for cross-border payments. Primarily on the Transfer between the payment service providers specialized in, is the overall concept for individuals interesting – currently the transaction fee is the Ripple Coin XRP in is 0.00001 XRP. (The current Ripple rate of about 0,000003 US dollars, but may vary depending on network usage.)
consequences for Blockchain-companies in Overseas,
The Brexit will have, in addition, for some of the Blockchain and of the company the consequences of which are to be found in the British territory. The exclusion of companies from EU privileges could complicate business for the company. The Vaultoro founders betrayed us in an Interview:
In terms of the Brexit we will see the similar to other companies, the business relationship in or from the United Kingdom entertained. Each company is mad at the British government because they speak no clear words and does not lead to the negotiations at the end. So companies can’t plan at all – this is a massive economic damage. By the Unplanbarkeit the hearing is in room close and the business partner could jump in the worst case.
The price of Bitcoin and of political crises
To possible political influences on the Bitcoin price, there is no shortage currently. So the smoldering is can take the end of the trade war between the US and China as a political mine field, the influence on the performance of the crypto-currency. For example, the criminal fell together in customs duties, the US President, Trump in August, has imposed, with an increase in the Bitcoin price. Also in (monetary)policyn-crisis areas, such as Venezuela, are valid BTC & co., as an Alternative to conventional currencies.
Thou shalt correlation with causation confound
all this time together you have in mind hanging out, correlation is not causality equate. In other words: even Though the two things at almost the same time to happen, doesn’t mean you each other also require. Or: Just because the Bitcoin price rises the closer to the back of the Brexits, it does not mean that suddenly all the British Bitcoin hodln.
More:
Bitcoin price falls massively behind the Crash of the Bitcoin price at the time of 2 million? The forecast of John McAfee Bitcoin: Not a terrorist currency and more – The situation on Wednesday#Bitcoin#Brexit#regulatory
