How Bitcoin Could Save UK Households $1.5 Trillion

Rage Comment : After Brexit, British household assets plummeted by $1.5 trillion, and the exchange rate between the pound and the dollar also fell to a historic low. However, more and more financial analysis and consulting companies have recently believed that Bitcoin is a good choice as a safe-haven asset, and can be used as a stable means of storing value to preserve the value of assets. In this way, Bitcoin, like gold and the Swiss franc, can preserve the value of assets without being overly affected by exchange rates.

Translation: Nicole

After the UK experienced the double whammy of Brexit and the rapid depreciation of the pound, researchers found that safe assets like Bitcoin could save British households $1.5 trillion.

Credit Suisse, a multi-billion dollar Swiss financial firm and banking group, recently revealed in an interview with CNN that British households have lost $1.5 trillion in wealth as a direct result of Brexit.

Almost immediately after Brexit, the value of most financial investments and assets plummeted. The pound hit a record low against the dollar and other reserve currencies, falling from $1.5 to $1.2 in five months.

The instability of the UK economy and financial turmoil triggered a domino effect in the country's stock market as assets and shares fell in value.

At the time, technology companies lamented the loss of a valuable customer base in the European Union. Some blockchain and bitcoin companies relocated to other leading European countries, including Germany and France.

Bitcoin as a safe haven asset

An increasing number of financial analysts and consulting firms, such as Bloomberg, have highlighted Bitcoin’s characteristics as a global safe-haven asset. Bloomberg TV said that Bitcoin is one of the three safe-haven assets in the world, in addition to gold and the Swiss franc.

Bloomberg also reported that demand for Bitcoin surged ahead of Brexit as investors and traders sought alternative assets to preserve their value.

Gil Luria

Gil Luria, managing director at Wedbush Securities, told Bloomberg:

“We saw some strength in Bitcoin in the days after Brexit, with people buying it as an asset that is not tied to the global monetary system, like gold.”

All in all, the UK households stand to lose more than $1.5 trillion due to the financial and economic instability caused by Brexit. If these households had stored their assets and wealth in safe haven assets such as Bitcoin or gold instead of cash and bank accounts, they could have avoided trillions of dollars in losses.

Bitcoin’s decentralized nature gives users and investors full control over their funds and ensures high liquidity levels and stable international exchange rates, allowing for fast and low-cost withdrawals.

Brexit, along with several other major economic changes, including the presidential election of Donald Trump, the denomination of certain banknotes in India and a crackdown on wealth management products in China, have demonstrated the importance of assets like Bitcoin to traditional investors and traders.

As Bitcoin becomes one of the few safe haven assets that is easily accessible to the public, it is widely believed that Bitcoin can gain mainstream adoption as a stable store of value.