Cryptocurrency such as Bitcoin and Ethereum have never been more popular. More and more people believe in the future of digital money, which is why thousands of investors and traders continue to ride the large highs and lows on the online exchanges. The online marketplace for bitcoin isn’t a million miles away from the LSE, however, unlike London trading, many people prefer crypto exchanges thanks to their incredible transparency.
There are plenty of solid reasons why London businesses and entrepreneurs might consider leaping into crypto but there are still massive uncertainties at play. Not only is Brexit continuing to loom large, but both the FCA and HMRC also appear uncertain as to where bitcoin and other currencies sit in terms of British legislation. Until Brexit finally occurs, it may be that we have to ride things out.
British businesses and cryptocurrency
Investing in cryptocurrency is an appealing prospect. For London firms interested in appealing to the wider marketplace, and in securing assets for the future, there are decisions which could leave them worse off. However, many firms simply aren’t taking advantage of the availability of crypto. While some national chains have slowly started to accept bitcoin as tender, largely online, mainstream acceptance is quite some distance away.
But does that mean that all UK businesses should avoid bitcoin? Maybe not. With enough research and deeper understanding, big chains and small businesses alike could get into a market that’s only going to increase in value. Some businesses, as well as investors, are put off by bitcoin being extremely volatile, but data does show that cryptocurrency has just as many highs as it does lows
Sadly, London firms are probably going to stay away from cryptocurrency until the law catches up. That won’t stop British investors from trading though, which poses a good question – when should businesses start investing in digital money?
A stable future
Businesses in London face uncertainty around the clock. This has been made worse as a result of Brexit, and with matters still unclear at the time of writing, it is unsurprising that the pound has taken further blows. With bitcoin and other cryptocurrencies, however, stability is quite likely. Despite markets rising and falling, global issues are unlikely to affect digital money. We can all see the ripple effect that political and global sagas have on the US dollar, the pound and the euro. Those issues simply won’t affect bitcoin and the like.
Cryptocurrency investing is now easier than ever. This means more and more people are likely to flock to the exchanges if their physical money keeps fluctuating in value. People in London are already using services which help them to refine their crypto investing decisions. Sites offering guides to crypto bots such as this bitcoin loophole review are extremely popular. British investors are using bots and programs to automate the choices they make when they do put any money down.
Therefore, stability and ease of use will likely appeal to many businesses. Some London entrepreneurs are already taking full advantage and are opening their services to bitcoin payments. At the moment, cryptocurrency is still a very niche, and somewhat mysterious topic. Therefore, any support investors can receive, they will welcome with open arms.
What to do next
Cryptocurrency is a fantastic concept on paper for London firms and UK business in general. As the pound continues to wobble due to Brexit and political instability, bitcoin and other cryptocurrencies may get stronger. However, the lack of support and clarity from British law and the financial establishment makes things that little bit murkier.
The FCA has previously suggested that it will consider a blanket ban on ‘cryptocurrency products’ and HM Revenue and Customs remains unclear about how it stands with regard to digital money. Consequently, these are not comfortable times for UK businesses to get behind cryptocurrencies. The benefits and the appeal may be plain to see, but without some rules and regulation, companies could be treading into very deep and hazardous waters.
London is a thriving city with many new concepts and ideas coming to the fore so it is likely that it will not be too long before the city and the country embraces cryptocurrency, however, that does hang in the balance. Should your business invest in cryptocurrency? On the one hand, yes – however, with UK law remaining so unclear about what happens next, it may be wise to hold back. Otherwise, investing a small amount of capital, just to test the water could help you work out whether it is something you wish to pursue.