The Bank of England’s head Mark Carney recently suggested that a central digital currency could unseat the US dollar: could the same fate await the British Pound? The Pound, which has already seen considerable drama as a result of Brexit, could feel the pressure of growing interest in online currencies.
Carney’s suggestion that a global online bank and currency could replace traditional money has spurred debate both in the UK and in the US. While there has been mixed press opinions published over Bitcoin’s success in recent years, the markets for cryptocurrency have never been larger. But can we expect to see digital currency replacing physical British money sooner rather than later?
Growing interest
Many see cryptocurrency as volatile stock, however, it remains extremely attractive to investors from all over the world. British investors can purchase stock and manage portfolios from the comfort of their mobile devices and home PCs, all without having to handle a single coin of physical money. The growing interest in crypto seems unlikely to wane any time soon. That is largely thanks to the evolution of goods and service trading.
E-commerce and digital entertainment are huge drivers of a digital economy. Concerns that all money might eventually go online appear to be taking a lead from other physical entities that are going digital. This is also a reason why so many people find e-currency to be so accessible and convenient.
Much of the interest in crypto comes from the lack of regulation. Bitcoin’s unregulated nature has raised concerns with many over the years, nevertheless it seems that a lack of a link to big banks and big money is what is pushing a lot of people towards the online currency. This, it has been argued, is a somewhat unsafe approach.
How are British people using crypto?
Cryptocurrency is far from entering the British mainstream but it is continuing to seep into major e-commerce platforms. British consumers, using a digital wallet and with access to a cryptocurrency exchange, can now trade in anonymous currency without bank tethers. Blockchain, the technology that is used to mine for cryptocurrency, works through a digital ledger. Traders can then purchase Bitcoin or other currency derived from the ledger, through which an exchange will take place online.
British people might at some time in the future flock to cryptocurrency as a result of disenchantment with the British banking system. Negative press reports surrounding banker bonuses, and continued uncertainty over Brexit, might be pushing the UK’s currency further and further out of favour.
A good time to invest
Signs continue to suggest that now is a good time to invest in cryptocurrency. A global standard, it is free from much of the trading oppression of physical finance. Spikes and dips in the value of popular currencies are no longer seen as the be-all and end-all. Many cryptocurrency traders are keen to suggest that selling too early is a risky move, indeed, more people than ever are keeping hold of their crypto stock and are reaping the benefits as a result.
What’s more, due to the very nature of online currency investment, it is easier than ever to buy into Bitcoin and the like. Traders can use services such as Bitcoin Code, an automated trading system which analyses past records to make more intelligent trading decisions. The use of bots also means you are able to invest in specific markets automatically, and maximise even with the smallest of investments.
Bots seem to be leading the way in terms of precise crypto investing, and there is already plenty of data to suggest that is happening.
Press reporting surrounding the Bitcoin bubble ‘bursting’ has largely died away. With many more currencies opening up through online exchanges, it has never been a more exciting time to set up your crypto wallet.
How will British banks react to crypto long term?
It is not currently clear how British banks will adapt to the idea of a unified digital currency but ultimately there is likely to be a push for regulation. However, it’s unlikely we will see any kind of moves in a digital direction too quickly.
Many people claim that Blockchain could result in the death of physical money. That, at present, may be seen as scaremongering; however, with cryptocurrency still going strong after ten years in circulation, it remains to be seen where it will go next. It is a relative unknown to traditional banks, meaning they have no precedents in place to guide their reactions to the new phenomenon.
If Carney’s claims regarding the potential for a unified currency prove to be true, more and more people are likely to leap into cryptocurrency sooner rather than later. That is at least one reason why British investors and business owners should consider giving Bitcoin and its contemporaries a second look.