Was Bitcoin as Good as Gold during the Brexit?

By Daniel Zo Bitcoin, UK, EU, Brexit

During the last couple of years, it was proven that the stability of digital currencies such as Bitcoin can best be analysed during moments of crisis. Due to the fact that the United Kingdom has recently voted to leave the European Union, the British Pound has collapsed in terms of value, thus proving that bitcoin is a safe haven asset.

Economic analysts from all around the world and supporters of the digital currency movement claim that bitcoin represents the ideal form of protection against most of the world’s major economic events, as it is independent from political moves, government regulations and economic crises. This led analysts to compare the currency to gold, thus making a strong statement that bitcoin is in fact, as ‘good as gold’.

Brexit

At this moment in time, an ounce of gold sells for roughly $1,333. The current value is given by a 6470% increase in its price, during the last century. While the dollar and other fiat currencies have continued losing their value, bitcoin, just like gold, has been situated in a constant value increase process.

There are several examples deemed worthy to prove that in moments of economic collapse or crisis, the reaction of many is to move money out of the country affected and to invest in digital currencies. Back in 2013, when Cyprus’ economy crashed, the country was put into a strong turmoil that managed to keep citizens from moving their cash out of the country. In return, this encouraged many to invest in bitcoin, hence causing a value spike. Similar events took place in China last year, when the stock market collapse placed the Chinese Yuan in free fall. Many of the country’s citizens invested into gold, but a large percentage also chose bitcoin.

Right after the Brexit, during a period of time when a large part of the markets and currencies tanked, people turned to bitcoin. In return, this made its value rise for over $100 when compared to the day before. A spokesperson for a UK-based bitcoin exchanged stated that their website traffic and registration remain much higher than normal, with an increase of over 20%.

The well-known member of the bitcoin community, Andreas Antonopoulos, stated that ‘Bitcoin has demonstrated, once again, its ability to serve as a safe haven in times of crisis, much like gold, only more flexible and transportable’.

While gold has a long history of being a safe haven asset for people from all around the world, bitcoin is slowly walking into its footsteps. While the cryptocurrency is still quite volatile, large-scale economic events can definitely prove its worth and the fact that it represents the world’s future currency.

Based on everything that has been outlined so far, what do you personally think about bitcoin’s reaction following the Brexit? Let us know your thoughts in the comment section below.