In 2016 the citizens of the Western world were surprised by the unthinkable: The United Kingdom voted mostly for the exit of this country from the European Union.

Although the surveys already warned that this was a possible result, the truth is that few expected that the populace would take the drastic step of separating from the common market.

This referendum was a risky move by then Prime Minister David Cameron, who ended up ending his political career while destabilizing the British society. It also cast doubts about the viability of the European Union in the years to come.

Since then, there have been negotiations between the United Kingdom and the European Union as both parties have been trying to reach a viable agreement.

This is important due to the impending economic losses expected due to the negative effects that Brexit will have on trade between the <a href="https://www.bbc.com/news/uk-politics-32810887">United Kingdom and the EU</a>. London, in particular, will be affected as it is the home of the biggest financial market in Europe.

However, negotiations so far have not achieved the expected success. Several deals sent by the executive have been rejected by the British parliament. This eventually led to the fall of former Prime Minister Theresa May and led to the rise of one of the protagonists of Brexit Boris Johnson.

Johnson government is in favour of leaving the EU without an agreement with the next deadline scheduled for October 31. His determination has reached the point of suspending sessions of the parliament until October 14 in order to prevent legislative readings to the agreement.

However, the members of parliament have passed a law which was ratified by Queen Elizabeth II, which would prevent a Brexit without an agreement. This situation has led to unprecedented political and institutional crisis in the UK.

The repercussions have been felt by the currency the Pound which has fallen due to the direct consequences of the current situation.  This has resulted in some financial investors pulling their capitals into Bitcoin.

Bitcoin is increasingly consolidated as a reserve asset in situations of <a href="https://www.cryptoknowmics.com/crypto/bitcoin-as-a-safe-haven-asset-china-usa-trade-wars/">uncertainty in the market</a> such as the political crisis regarding Brexit.  This is largely thanks to the lack of proportionality between the price of BTC and the world market.

Since Bitcoin does not conform to these rules, the fall in international markets price does not result in the reduction in the value of Bitcoin. Therefore many investors view it as the perfect financial product to safeguard the value of their capitals.

Therefore in the short term, we could observe an increase in the price of Bitcoin driven by Brexit. The developments in the coming weeks will determine how this plays out in the global markets.

Brexit Chaos Good News For Bitcoin Adoption

I am olowoporoku adeniyi, writer, editor and crypto evangelist, with five years experience in the Blockchain industry.

Brexit Chaos Good News For Bitcoin Adoption

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