As the RMB continues to depreciate, will Bitcoin become the savior of safe-haven funds?

It won’t surprise anyone to hear that the Chinese yuan will continue to depreciate after Brexit. In fact, Premier Li Keqiang mentioned that global finance may collapse due to Brexit. At the same time, this news also creates an opportunity for Bitcoin, of course, the premise is that people are willing to take the risk and try it.

For those who have been following the financial news over the past few months, you may have noticed the depreciation of the RMB. Now that the Brexit referendum has not yielded a happy result, the People's Bank of China (PBOC) has devalued the RMB in order to further stabilize the value of the RMB. The 0.9% depreciation marks the largest downward change since the sharp depreciation in August 2015. In fact, the RMB exchange rate has created a new low since 2010 after this decline.

The RMB continues to depreciate

We can already feel the impact of Brexit on the world, but it is just the beginning. Our global economy is very fragile, and any political changes may produce a series of vicious cycles. In addition, those countries that have shown signs of economic recovery may also see stagnation or decline in the future. It is worth noting that Premier Li Keqiang mentioned that all economies are highly interdependent. In addition, it is undeniable that the impact of Brexit has had an impact on the depreciation of the RMB.

Economic instability is the last thing our society needs. Experts and analysts predicted that the UK would not leave the EU, but it turns out they were wrong. Therefore, they are trying to minimize the damage and further affect the global economy. Judging from the development of the situation, there is no better time than now to find alternative solutions.

Alternative market opportunities

The gold and precious metals markets have suddenly seen a surge in investors. Despite the Brexit referendum defeat, gold prices have recovered well. The depreciation of the Chinese yuan is driving more investors to alternative markets. Whether Bitcoin is one of them remains to be seen.

Bitcoin trading is completely different from traditional investing. Short-term gains or losses in Bitcoin are difficult to guarantee, which makes it less attractive to some investors. But this does not mean that Bitcoin prices will not rise in the future. With the Bitcoin block reward halving date approaching, anything can happen.