Italian referendum could send investors to Bitcoin.
Brexit vote caused turbulent economic times for European residents, as many sovereign currencies and stocks plunged. During this period, the British exit from the EU caused Bitcoin’s value to spike as many turned to the decentralized currency as an economic safe haven. On December 4, the cryptocurrency’s price may rise again as the Italian constitutional referendum prepares to shake up Europe’s economy once more.
Next December 4 will be an eventful day for worldwide markets, as the globe may get an economic shock. Italian citizens will vote on amending the constitution by changing resolutions — alongside absolving powers given to the state, Parliament, and bureaucrats. During this time Italian government bonds and securities have been selling like hotcakes with many preparing for an economic crisis.
The European region is indeed preparing for a rude awakening as the Financial Times reported eight troubled banks could fall by the wayside if Renzi loses. If the Italian referendum goes sour, it could mean investors could turn to an uncorrelated asset such as bitcoin.
Italian residents have six cryptocurrency exchanges to choose from, including: Coinbase, CleverCoin, LocalBitcoins, The Rock Trading, BitBoat, and Bitstamp. Moreover, the country has eight bitcoin ATMs and a friendly environment for purchasing cryptocurrencies. Recently, Italy’s largest cab service started accepting the virtual currency for fares. And a bitcoin price surge may not be only limited to Italy if the vote sparks global purchasing.
On June 23 the bitcoin price dipped to a low of $550, yet just before the Brexit vote came in the cryptocurrency spiked to $675. Gold and bitcoin values went up significantly as investors turned to safer hedges. One week before the vote took place the San Francisco-based exchange Coinbase saw a 55% rise in British registrants and a 350% increase in UK sales.
Italy is one of the EU’s largest debtors, and the aftermath of its controversial referendum vote could be disastrous. The country’s borrowing has led to financial instability as many of the banks have been mismanaging lending practices.
Many countries around the world are suffering from economic hardships. Bitcoin use is increasing within these regions such as Venezuela’s hyper-inflation to India’s recent demonetization. Italy’s referendum is sure to cause market chaos.
Disclaimer: This press release is for informational purposes only. Information does not constitute an investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent infocoin views and should not be attributed to Infocoin.