Gabor Gurbacs, a strategist at investment giant VanEck, believes that as the exchange rate of fiat currencies fluctuates wildly, making Bitcoin look more like a “stable currency”, Bitcoin will gain more traction in the UK. Many people this week also believe that Bitcoin is more attractive than the British pound.
Other currencies such as the euro, the pound and the yen tumbled as the dollar continued to appreciate. Sterling’s depreciation accelerated this week, dropping to a record low near $1.03 against the dollar.
Market anxiety emerged as the Bank of England has so far avoided intervening in currency markets. At this time, the purchasing power of the British people was hit by the double factor of the pound depreciation and inflation climbing to a four-year high. Gabor Gurbacs predicts
The UK will take a big hit as the pound fluctuates wildly. Since the UK is now no longer under the jurisdiction of the EU authorities, the country will have the opportunity to become a Bitcoin powerhouse. I think the British leaders will make good use of this opportunity.
Sterling has lost nearly 25% of its value against the dollar this year. Although the data shows that Bitcoin has plunged 56% this year, if it is extended for a long time, Bitcoin is more attractive as a safe-haven.
In his own assessment of fiat currency losses on Sept. 26, MicroStrategy executive chairman and former CEO Michael Saylor noted : “The pound has lost 67% against the dollar over the past four years.
According to data from James Butterfill, head of research at CoinShares , on cryptocurrency exchanges Bitstamp and Bitfinex, the GBP/ Bitcoin pair typically trades at a combined $70 million per day, but on Sept. 26, it exploded to 881 million. USD, surged more than 1,150%.
James Butterfill argues that this shows that when a fiat currency is threatened, investors start to favor Bitcoin.
Saifedean Ammous, author of the popular book The Bitcoin Standard, said the phenomenon is “fascinating” .
At the same time, Gabor Gurbacs admitted that while he may be overly optimistic that the UK will embrace bitcoin, the G20 countries could still implement major policy changes to bitcoin acceptance. He says
Like gold, bitcoin may be used as a hedge against their own policies. It’s worth configuring and supporting a fraction of the ratio. Some people are starting to understand this.
With the exception of the pound, the data showed that major fiat currencies were hit harder than emerging market currencies amid a surge in the dollar.
Robin Brooks, chief economist at the Institute of International Finance (IIF), announced this week
Feng Shui turns. Emerging markets such as Brazil and Mexico have outperformed G10 currencies against the U.S. dollar this year, a major shift that global markets have not seen before. Monetary policy in emerging markets has been more correct lately than in advanced economies. Emerging markets are doing well
Charts from Bloomberg show that the Brazilian real and Mexican peso have even appreciated against the U.S. dollar this year.
The chart below shows that the Japanese yen and British pound have returned around negative 20% against the US dollar this year, the worst in the rankings, the euro has returned negative 15%, and the Taiwan dollar is negative 13%.
