Bitcoin (BTC<\/a>) will see increased interest from the United Kingdom \u201cvery quickly\u201d as fiat currency volatility makes BTC look like a stablecoin.<\/p>\n That was the conclusion from Gabor Gurbacs, strategy adviser at investment giant VanEck, one of many flagging<\/a> Bitcoin\u2019s appeal over the pound this week.<\/p>\n As the U.S. dollar runs rampant, its strength has come at the expense of trading partner currencies, notably the euro, pound and Japanese yen.<\/p>\n The pound\u2019s disintegration gathered pace this week, however, as GBP\/USD hit its lowest on record at nearly $1.03.<\/p>\n With the United Kingdom\u2019s central bank, the Bank of England, avoiding interventions so far, nerves are showing as purchasing power takes a double hit from currency weakness and inflation at forty-year highs.<\/p>\n \u201cThe United Kingdom will get orange-pilled very quickly given GBP volatility,\u201d Gurbacs predicted.<\/p>\n \u201cGiven that the UK is now outside of the EU bureaucratic apparatus, it will get another chance to become a Bitcoin hub. I think UK leaders will use this opportunity reasonably well.\u201d<\/p><\/blockquote>\n The pound was down nearly 25% year-to-date at one point in USD terms. While Bitcoin beats it at 56%, data from\u00a0Cointelegraph Markets Pro<\/a> and TradingView<\/a>\u00a0shows,\u00a0the longer the time horizon, the more attractive a BTC hedge becomes.<\/p>\n \u201cOver the past four years the dollar has collapsed -67% gains USD,\u201d Michael Saylor, former CEO of MicroStrategy, noted<\/a> in his own assessment of fiat currency losses on Sept. 26.<\/p>\n According<\/a> to data from CoinShares head of research James Butterfill, trade volume for the GBP\/BTC pair on major exchanges Bitstamp and Bitfinex, normally worth a combined $70 million per day, hit a giant $881 million on Sept. 26 \u2014 an increase of over 1,150%.<\/p>\n Butterfill argued that this showed that “when a FIAT currency is threatened, investors start to favour Bitcoin.”<\/p>\n Reacting<\/a>, Saifedean Ammous, author of the popular book, “The Bitcoin Standard,” called the phenomenon “fascinating.”<\/p>\n Gurbacs, meanwhile, acknowledged that while he \u201cmight be too optimistic about the UK,\u201d G20 countries could yet enact a major policy shift vis-a-vis BTC acceptance.<\/p>\n Related:\u00a0Bitcoin gains 5% to reclaim $20K, eyes first ‘green’ September since 2016<\/a><\/em><\/strong><\/p>\n \u201cLike gold, Bitcoin could be a hedge against their own policies. Which is worth a small % allocation and support,\u201d he continued. <\/p>\n \u201cSome are starting to understand this.\u201d<\/p><\/blockquote>\n Beyond the pound, data shows that it is the major fiat currencies that are suffering more at the hands of a surging greenback than those of emerging markets (EMs).<\/p>\n \u201cThe tables have turned,\u201d Robin Brooks, chief economist at the Institute of International Finance, declared<\/a> this week. <\/p>\n \u201cEmerging markets like Brazil and Mexico are year-to-date outperforming G10 currencies against the Dollar. This is a big pivot in global markets that’s unprecedented. EM monetary policy is these days more orthodox than in advanced economies. Well done EM\u2026\u201d<\/p><\/blockquote>\n An accompanying chart from Bloomberg showed the Brazilian real and Mexican peso even gaining on the dollar in 2022.<\/p>\n The pound brought up the rear along with the yen, while the Russian ruble was notably absent, having hit its highest in USD since 2015.<\/p>\n The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<\/div>\nUK becomes fertile ground for Bitcoin “orange pill”<\/h2>\n
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G20 “starting to understand” the need for BTC hedge<\/h2>\n
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