At the time of writing, the British government – and its people – are still no clearer on what is going to happen with Brexit. Some politicians continue to push for a deal, while others feel that leaving the European Union without any kind of agreement is going to be the smoothest option to take. Whichever way you look at things, the lives of British ex-pats living in Spain and elsewhere in Europe might change for good.
With all the confusion surrounding Brexit, many people still don’t know what to do when it comes to investing money. It’s safe to say that the British pound is going to keep fluctuating. Even the slightest changes in parliament, and in the news, seems to make the currency rise and fall. Therefore, it’s reasonable to assume that should a ‘no-deal’ situation occur, the British currency is going to react in the negative, at least for a while.
With this in mind, what can British citizens, including ex-pats, do to safely invest once the exit from the EU finalises? The answer may well lie online.
Introducing cryptocurrency
Cryptocurrency, such as Bitcoin, is emerging as a reliable choice for investment in an uncertain world. Bitcoin is completely decentralised, which means that there are no middlemen. There are no banks or companies in the middle of the process, calling the shots. Many people choose cryptocurrency because it is completely removed from society. Therefore, when big political changes occur, such as Brexit, Bitcoin won’t budge one way or the other.
While many investment opportunities will rise and fall with world changes, crypto remains steadfast. There are obviously going to be other appealing choices for investment after Brexit, however, on the face of things, the only choice which isn’t likely to face the brunt of a no-deal exit is digital money. The world is moving ever-more digital, too, which means it may be prudent to start trading sooner rather than later.
Cryptocurrency is also very easy to get into. Users simply need to download a ‘digital wallet’, which is a program that will allow them to trade in physical money for digital funds. With this wallet, they can then head to online exchanges and invest their money. With these investments seeming so simple and so streamlined, many wonder why Bitcoin hasn’t yet gone fully mainstream. There are a few reasons for this.
The risks
The world is still unsure of Bitcoin. Cryptocurrency regulations in 2019 are still a little shaky, and the British law in particular is still murky on quite where Bitcoin resides in modern British society. This is mainly thanks to many forms of cryptocurrency being decentralised. There is no form of middleman regulation. Despite Bitcoin, in particular, resisting fraud, a lack of central control continues to frighten banks, businesses and even potential investors.
Not only this, but the risks surrounding Bitcoin and crypto focus on its volatility. Bitcoin gets a bad rap because it is notorious for large peaks and low dips. It can be a fantastic way to make money, but when it crashes, it crashes down hard. Anyone who has been investing in crypto for a while will likely say that you need to traverse the valleys to climb the mountains. For many people, however, this simply isn’t safe to do.
Is Bitcoin worth it after Brexit?
Therefore, we need to come back to this idea of Brexit. With Bitcoin being so uncertain and so volatile, it’s understandable why it’s yet to go fully mainstream, but that doesn’t make it less viable in the face of a no-deal scenario. If there’s anything that British ex-pats have learned over the past few years, it’s that strange things happen – and we need to consider what is going to happen to the pound should a no-deal scenario unfold.
It’s likely that the British currency will take a large hit if no deal emerges with the EU. That’s because, as research shows, there are going to be many uncertainties to come in the way the country does business with the rest of the world. Not only that, but Britain is facing years of untangling various laws and statutes. Once the UK leaves the EU, its currency is going to feel the pinch.
Therefore, it may be safe to invest a little money in Bitcoin now and to weather the usual storms. Once you get used to the way it works – perhaps by using bots or programs to help – you might find investing in the currency worthwhile before the pound nosedives.
