UK Election … Impact on Bitcoin?

Brexit

The fact that Bitcoin has been soaring in value in the recent past has led to many speculations on how long this will last. There are many speculations on what may cause the crash of the giant crypto currency that is currently trending everywhere. Bitcoin as a currency is decentralized in nature and that means that it is very likely to perform differently from other currencies that are controlled by the government. Even though the cryptocurrency is decentralized, its price can still be influenced by a range of factors though it may be different from those of fiat currencies.

There were fears that the UK election and the Brexit negotiations may have an effect on the currency and many big investors of the currency were seeking insurance. Truth is the elections have had an impact on other currencies especially the Great British pound. There was a plunge in values shortly after the exit poll results were published. Well, the good news is that the value of Bitcoin was not affected at all by the elections, if anything it got stronger and further proved it’s reputation as a longer term store of value. This however does not mean that there are no external factors that will ever affect the price of Bitcoin in future.

Media
Whether you believe it or not, the media controls a large part of our lives than we may imagine. This is one of the reasons it may lead to the fall of the currency. Any negative publicity of the currency or news about hacking or bankruptcy will lead investors to withdraw from the cryptocurrency leading to a fall in its value.

Government regulations
Even though the currency is decentralized and the government cannot directly control trading of the currency, it will still have an influence on the use of the currency. The fact that the currency is mainly used for money laundering has made some governments to completely ban the currency and there have been proposals to introduce third party supervision. This may lead to the fall of the currency since the main reason many people use it is its anonymity and the fact that it is decentralized.

Bitcoin valuation
Unlike other currencies which are easy to predict the value, Bitcoin is totally different and most of the time their value can only be determined when exchanged with fiat currencies. When a change in the way of determining value of Bitcoin is made, it may change the perception associated with the currency which may lead to a drop in the value of the currency.

In Summary, there are many things that may be a threat to the value of Bitcoin; those are just but a few. These are just predictions though; Bitcoin has faced many threats in the past and every time it proves. yet again, that it can provide protection against outside turmoil it’s reputation continues to strengthen. Despite the pretenders to the crown Bitcoin is still believed to be the father of crypto currencies and a great investment worth considering.

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