Viability, trust, these are concepts that are difficult to attribute to yourself, but this has been the challenge that the digital currency industry has faced since its beginning. As we see the fallout of the UK referendum on the EU both gather pace and promise more turmoil to follow, the uncertainty of the fiat financial system, both currency and markets (while Bitcoin remains relatively stable), is providing that viability for the industry by itself.
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While some may cite the result of the referendum held in the United Kingdom to leave the EU as the cause, it is perhaps more accurate to suggest that event has simple revealed the instability in the world financial systems today. Either way, currencies in freefall and debt becoming an issue once again for EU banks has left central banks nervous and scrambling around for methods of propping up markets while telling us all everything will be just fine. Turmoil is a good word to describe not just the current plight of the EU financial systems, stuck in limbo as the UK is half in and half out, but a malaise that is spreading rapidly around the world.
It is interesting that there is much talk of a shift of capital to assets, Gold in particular is being mentioned as always, but throughout all this Bitcoin’s value has remained remarkably stable. It has dipped, and risen again, but remains roughly where it was at the announcement of that UK result. Now, that may not seem like a quality investment, staying level, however, it does signify the strength of the bitcoin market that the largest financial upheaval since 2008 has mostly been weathered well. Indeed, it has survived much better than the British Pound for one.
While this is merely a snapshot of the performance of Bitcoin itself, it is perhaps a sign that more investors are seeing bitcoin as a viable asset, and as such it represents a new beginning for the cryptocurrency industry itself. While challenges remain, in particular usability for the non-technical end user, confidence from investors provides validity of not just Bitcoin itself, but the concept of a digital currency as a viable alternative to fiat systems.
As the ongoing fallout from the UK referendum continue to escalate, cryptocurrency industry businesses will be well placed to capitalize as a stable digital currency becomes more and more attractive by default.