Buyers Of Bitcoin Seeking Cover From British Pound
The demand for bitcoin increases as a safe bet from the British pound, due to the United Kingdom voted to leave for the European Union.
After vote out, the pound fall to its lowest price in the last 30 years, increasing demand for the assets including gold and US treasuries. The concerns about the exit of the UK from the European Union could hurt the economy of the world. Bitcoin, which is a digital currency that doesn’t have a connection with any government or central bank and often regarded as as a haven by the currencies holders which is on the declining rate.
The CEO of the Kraken Jesse Powell states that there are a great majority of people who are exchanging Bitcoin for Euros and Pounds. Kraken is the largest bitcoin exchange in euro volume across the world. He further said that our volume has been doubled in the last 24 hours. He says the people are looking for a place which is safe for their money.
Biitcoin is one of those digital currencies through which the users can protect their savings against the any declining rate in the national currencies. For the citizens of countries such as Venezuela, the Bitcoin has offered a haven whereas in Russia, a double digital plunge is seen by the ruble.
The foreign exchange trading as increased all over the world. According to JPMorgan Chase and Co., the trading volumes of the currency has reached to a record from Thursday night into the Friday. The CEO of the company further states that there is expectation of three times of the normal daily volume of the biggest fixed income trading firm in the world.
The bitcoin is benefiting from the Brexit over the last few days as the consumers are buying bitcoin as an asset uncorrelated with the global monetary system much like gold further states by the Managing Director of the Wedbush Securities Gil Luria. The bitcoin is volatile, which is better for people than knowing their money’s value will be reduced by 10 to 30% within some weeks.