Bitcoin (BTC) has been in high demand among citizens of smaller nations such as Venezuela, whose economic conditions have adversely affected their notional currencies.
Cryptocurrencies will now face another test with the upcoming Brexit deal. If the UK is forced to leave the European Union without an agreement, experts believe the pound will be hit hard and lose up to a quarter of its value.
In view of this uncertainty, will market participants use cryptocurrencies as an alternative source of investment or stick to the traditional investment instruments? We believe that digital currencies will be noticeable as they are likely to be at the end of their one-year bear market. According to Changpeng Zhao, Chief Executive of Binance, the new trading platform in Jersey has been in great demand.
CNBC contributor Brian Kelly expects crypto currencies to perform well in 2019. Global geopolitical tensions may increase demand for digital currencies as investors seek to hedge their positions. However, Kelly does not expect approval for the Bitcoin ETF this year.