With Britain reeling after a parliamentary confrontation aimed at thwarting the government's threat to take the country out of Europe in a Brexit without an agreement, Bitcoin (BTC) is relatively stable compared to the British pound sterling.
On September 3, the British liberal-trend newspaper The Independent reported that Bitcoin, in the midst of the country's parliamentary drama and the tribulations of the pound, on the contrary, experienced a period of solid and prolonged growth.
At the time of publication, the main cryptocurrency is trading above USD 10,500 – an increase of 8.36% on the week. The British pound, meanwhile, traded yesterday below USD 1.20 – a level not seen since 1985.
British political commentators joke, assuming to the lying "Brexiteer" Jacob Rees-Mogg on a chart of the depreciation of the price of the pound. Source: @paulmasonnews
The political turmoil in 2019 is not limited to the prolonged stagnation of Brexit in the United Kingdom, but includes the escalation of trade tensions between the United States and China, a deepening of the monetary crisis in Argentina and violent protests against China in Hong Kong.
Bitcoin breaks the traditional market trend and recovers
The Independent cites an interview with Marcus Swanepoel, CEO of the cryptocurrency firm, Luno, who said:
"After a dull weekend, Bitcoin went against the market trend yesterday, quickly breaking the USD 10,000 level and reaching USD 10,500." Today, the focus will be on Europe and Brexit developments in the United Kingdom, as well as the deepening of the crisis in Argentina. "
Swanepoel's comments echo previous reflections by Nicholas Gregory, CEO of CommerceBlock, a blockchain company, who has recently reflected on the harsh impact of political upheavals on traditional markets and fiat currencies:
"An exit without EU agreement will not only create confusion and volatility in two of the main fiat currencies, but will also trigger an identity crisis for the world system, since the contingency and vulnerability of the world's main fiat currencies remain at Discover."
Neil Wilson, chief market analyst at Markets.com, has also noted that the outlook for the pound will not only be affected by the lack of agreement, but also by the uncertainty caused by rapid general elections in Britain.
"Another nail in the coffin of fiat money"
Not only political events, but the response of the traditional financial sector is exacerbating – not mitigating – the confidence of markets in the middle of an upside down geopolitical climate. Gregory has argued that the case of cryptocurrencies is reinforced when central banks increase the money supply by saying: "It is another nail in the coffin of fiat money."
In recent months, the head of the fundamental credit strategy at Deutsche Bank argued that the central bank's dovistic policies are having a positive impact on alternative currencies such as Bitcoin.
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