Is brexit good for cryptocurrencies?

Since the British people voted to leave the eu in 2016, brexit has been covered and followed by mainstream media and become one of the hottest topics in Europe.Brexit is a controversial issue that has divided the British public.Interpreters are working hard to move the process forward.The so-called "brexit impasse" even led directly to the ouster of former prime minister Theresa may.The conservative party, led by British prime minister Boris Johnson, faced a huge challenge at first because it did not have the support of the British parliament, but its chances of leaving the European Union have greatly increased since winning a landslide victory in the general election in December 2019.There has been a lot of talk about the possible impact of brexit on the UK economy.It will also be interesting to explore the potential impact of brexit on the bitcoin and cryptocurrency industries.In the face of major geopolitical events, investors tend to use digital assets as a hedge against political risk and economic uncertainty.Bitcoin as a safe-haven assetAfter the 2008 financial crisis, the enigmatic satoshi nakamoto invented bitcoin in 2009 as a peer-to-peer electronic payment system independent of central banking and government monetary policy.As bitcoin became popular, investors began to see it as a safe haven (like gold) : an asset to hold on to and avoid the consequences of market turbulence caused by major geopolitical events.We see a lot of these cases around the world.Bitcoin, along with DASH and other digital currencies, has become popular in venezuela and Argentina, where the Latin American currencies are experiencing rampant inflation.Thanks to record-high inflation rates, citizens in both countries have embraced bitcoin as an alternative medium for exchanging and storing value in the aftermath of the economic crisis.The uncertainty of a trade war between China and the us is also a boon for cryptocurrencies.According to a report by eToro, the number of bitcoin transactions on its platform increased 284% between the peak of the trade conflict (May 19 to August 19, 2019) and the beginning of the conflict (March 22 to June 2018).By contrast, gold, the most popular safe-haven asset, saw trading volumes rise 73 per cent over the same period.While gold rose 17.4 percent against the dollar, bitcoin grew 42.2 percent between May 19 and August 19, 2019.Bullish case for bitcoin?As the eu's second largest economy, the impact of brexit on both sides remains highly uncertain even after the two sides have reached an agreement.To hedge this risk, we may see more investment flows into bitcoin as investors and the public want to diversify their portfolios.The price movements of bitcoin the day after the brexit vote are good evidence of this effect.On June 24, 2016, the price of bitcoin rose 18.2%.Over the same period, the UK fell from 1.321 to 1.484(down 11 per cent).While the value of digital assets may rise after brexit, it could also pose compliance challenges for blockchain companies.But it will also bring new opportunities to blockchain enterprises.Cryptocurrency trading platforms could use the opportunity to offer transactions between fiat and cryptocurrencies to act as a post-brexit gateway between the UK and the eu.The UK could also capitalise on the growing interest in cryptocurrencies by introducing new, cryptocurrency-friendly regulations to promote business innovation and boost London's status as a financial centre.Time will tell.