You cannot escape Brexit. It’s not possible that you don’t talk about Brexit in the UK. It is inevitable that the UK is leaving the European Union. But how will it impact the markets? Most importantly what will happen to Northern Ireland and the Republic of Ireland?
The partition took place on May 3rd, 1921 Under the Government of Ireland Act 1920. Today it is known as Northern Ireland and still makes a valuable part of the United Kingdom. On the other hand, the latter is known to the world as the Republic of Ireland.
IRA, THERESA MAY BILL AND COMMUNAL TENSION
It’s a well-known fact that Brexit would create a crisis at the Irish Border. As a part of the European Union, the United Kingdom’s border have been relatively open for trades and are being carried out freely before Brexit happens. The Northern Island is also known as Northern Ireland would have hard-borders after Brexit. Hardening the borders could put one of Europe’s success stories in Jeopardy.
National Paramilitaries, like the Irish Republican Army, believed that Northern Ireland was rightfully part of Ireland. The Unionist Paramilitaries fought back defending their place in the UK. These groups blew up buildings, set off car bombs and engaged in bloody street fighting. The Violence lasted for 30 years and killed over 3,600 people and came to be known as the Troubles.
The Good Friday deal would be violated due to Brexit. The situation is still imaginable due to history. With the Economic crisis, the sterling pound will be going down and as recent history states, the demand for alternative monetary system increases.
BREXIT AND BITCOIN
The United Kingdom is set to leave the European Union on the 29th March 2019, Under Article 50 of Treaty on European Union. This will significantly have an effect on world affairs and possibly, lead to increased demand for Bitcoin as a monetary value to the Pound and Euro. A survey conducted by YouGov revealed that 93% of the UK citizens are aware of Bitcoin and such awareness is high across Europe. In these scenarios, the demand for a monetary alternative will surely increase and will be impacted less by the political pressures.
BITCOIN MIGHT BENEFIT FROM BREXIT: HISTORICAL EVIDENCE
The price of Bitcoin has no correlation with the traditional assets which includes Stocks or Forex. Certain world events, particularly with a strong influence on the value of Monetary and Financial systems, tend to increase the demand for Bitcoin as a monetary alternative.
Bail-in of insolvent Cypriot Banks in early 2013 is a very good example. The development sends quite a strong message that client deposits could be seized due to the events of bank failure. Bitcoin investments increased dramatically, as investors realized the advantages of Bitcoin as a un-confiscatable monetary asset. Its a fact that Bitcoin was quite untested and experimental at the time, this incident demonstrated that Euro savings could be just as risky.
Other examples of such incidents include:
– Venezuela’s economic disintegration and monetary hyperinflation which resulted in strong localized demand for Bitcoin as an alternative.
– China’s Tightening exchange controls which resulted in Buying and even mining Bitcoin by the wealthy Investors of China. As Bitcoin was seen as a borderless which enables the wealthy Chinese to send their capital abroad for investments and safekeeping.
BRITISH STERLING POUND AND BREXIT
From the previous Global Incidents, it’s quite predictable that Brexit will surely have an impact on the Monetary systems. The value of Sterling pound is supposed to decrease and the demand for Cryptocurrency, specifically of Bitcoin will increase. This will result in high activity in the market. With the transition period of Brexit, Bitcoin can be a very good alternative for Monetary exchange system for Northern Ireland which is a very valuable part of the United Kingdom.
If you own the Sterling Pound, Get rid of it.