Britain is staring at a recession in the coming months. On October 31, Britain is set to leave the European Union. This event has drawn great controversy with some citizens preferring an exit with a deal with the EU while others are calling for a no-deal exit. Important to note is that newly elected Prime minister, Boris Johnson has indicated that the deadline will not be extended as was done on March 29. Theresa May, the former PM, chose to ask for an extension in order to work a deal before the exit. In contrast, Boris Johnson throughout his campaign has promised that if a deal is not found by the deadline, Britain will have a no-deal exit.
If this becomes the case, Britain could be headed for a recession. This will turn out as a positive trigger for Bitcoin. The digital asset is designed to be a safe haven in economic and political turmoil. The event should see it rise to the occasion, proving its worth.
Pic: Chris Lawton.
Weeks away from Brexit and the cracks are showing. The British economy declined last quarter for the first time since 2012. This means that the economy is beginning to drag in fear of a hard Brexit. Labour MP David Lammy tweeted:
“Two weeks into Boris Johnson’s hard Brexit government and we are now officially halfway towards a recession,”
The economy of Britain stalling since 2016 when the country voted to leave the EU is now boiling down into a potential recession. If this scenario plays out, we could see investors run to Bitcoin. Demand will rise and prices will soar. A few weeks ago, we reported that Bitcoin searches on Google had skyrocketed in Britain. This will continue to climb in the months to come.
Not Just Britain, The U.S, And China Also Headed For A Recession
It is not just Britain struggling. The U.S has also been tipped to undergo a recession in the next two years. The country is struggling with a stalling economy, a trade war with China and FED’s rates cut. This could easily see the economy over the coming months undergo a minor recession. China shares the same problems, the trade war, a stalling economy, and it’s Central Bank just recently devalued the Yuan to a new 11 year low.
For all these economies, the only way for investors to avoid losses is by jumping into Bitcoin. This will see prices rocket in the months to come. It will further see Bitcoin show its full potential as a hedge against banks.