A bitcoin investment firm led by two former JPMorgan traders has published a note which speculates that the EU referendum in the UK could lead to the ultimate decline of the euro, thus boosting the value of the digital currency. The comments follow positive appreciation in the price of bitcoin after the UK announced it would leave the European Union last week, an event some market observers believe allowed the non-governmental digital currency to showcase its advantages as a hedge in times of uncertainty in more traditional markets. As a result of the event, Global Advisors Bitcoin Investment Fund (GABI) owner Russell Newton wrote in an email to investors that it is time for them to begin preparing for the “ultimate death” of the euro currency. The former JPMorgan commodities strategist wrote: “If – or when – we see the break up of the zone and the currency, I believe bitcoin will fill some of the vacuum. Bitcoin’s inverse correlation to weakness in fiat currency regimes around the world has been seen many times and very markedly in the run up to the Brexit.” Elsewhere, Newton took aim at the traditional financial system as “inefficient” and “overregulated”, pointing to the success of startups like Facebook and Amazon as reasons to be bullish about a new technology platform that could disrupt financial markets. Newton went on to predict that bitcoin’s price will remain robust in July, and that ether, the native cryptocurrency of ethereum, will likely become part of an “ecosystem of blockchain-based solutions”, though he believes bitcoin to be more resilient today. Overall, Netwon spoke broadly about the benefits of digital currencies in the context of the financial system. “Bitcoin and blockchain offer a future filled with creativity, functionality and indeed use cases that we cannot yet conceive,” Newton continued, concluding: “I believe that Brexit will invoke the feeling, at least in the UK, that bigger, structured, controlled and mandatory management is not the way forward, in politics, life or finance.” Correction: An earlier version of this article stated that the UK was part of the eurozone. Cracked euro via Shutterstock The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
JPMorgan (GABI), a bitcoin investment firm led by two former Global Advisors Bitcoin Investment Fund traders, has written to investors advising them to prepare for the "ultimate death" of the Euro, following the Brexit vote. As a result, the value of Bitcoin would rise as it replaced some of the 'vacuum' left by its demise. The email also noted that Ether would become part of an "ecosystem of blockchain-based solutions."