The Brexit is a doom scenario for traditional finance all over the world. As stock markets continue to lose ground, and the Pound Sterling devalues, there is an increased interest in gold and silver. Bitcoin, that other scarce store of value, is doing quite well too.
Also read: India’s Reserve Bank Talks Up Blockchain Amidst Brexit Fears
While the majority of investors around the world thought the Brexit vote would result in a “Remain” decision, the opposite has come true.
Stock markets started sliding as soon as the “Leave” decision was announced, and the demand for gold started going up.
Gold Gains in Popularity
The price of gold went up quite spectacularly yesterday. The GBP value of gold started at £852 yesterday morning and went up to as high as £1,004.
That value could not be sustained, though, and things settled down somewhere around £950 for the remainder of the day. Quite a substantial increase for this scarce precious metal, and not entirely unexpected either.
A similar trend was noted across the USD markets, as the price of gold gained value there as well.
Right before the Brexit voting began, gold was sitting at $1,250 USD an ounce. A peak was reached at $1,340, before going back down to $1,320.
Further volatility in the gold market is expected to take place in the coming days.
Pound Sterling Drops in Value
Perhaps the biggest downfall came in the form of the GBP losing value compared to the US Dollar.
With an 11 percent decrease in value, it was the first time in over thirty days such an event was witnessed. When the day was over, however, the decline was confined to 8 percent.
The Euro suffered some losses as well, and will remain subject to volatility.
Investors all over the world are trying to find safe havens for their wealth. Precious metals will always remain popular, but bitcoin is something investors may want to keep an eye on as well.
Bitcoin Remains Strong During Brexit
The GBP trading volume for bitcoin was not affected by the Brexit decision.
Statistics indicate trading volume was rather low, although not much lower compared to previous weeks. This may have to do more with the upcoming Bitcoin block reward halving than any political games, though.
It remains to be seen how UK bitcoin exchanges will be affected by the Brexit situation. For the time being, the majority of trading volume is originating from LocalBitcoins and Coinfloor. Coinbase, which launched its service in the UK back in April 2015, completes the top three.
What are your thoughts on Bitcoin holding firm as a result of the Brexit? What does the future hold? Let us know in the comments below!
Images courtesy of Shutterstock, JM Medical.