The people have spoken, and they said. “no.”
Yes, the Prime Minister of Italy, Matteo Renzi, was ousted due to the votation that happened last Sunday in Italy. The result was an astounding “no.” But what makes this relevant to Bitcoin?
We all know that Bitcoin, as of the moment, acts as a haven whenever one country’s economy is doomed. When trust seems to be an expensive gift, investors usually head towards Bitcoin to seek protection.
Those of you who are Bitcoin veterans know that political upheaval, economic turmoil and general uncertainty in the global markets are great for the value of Bitcoin in the immediate future. For those that are new to the Bitcoin community, welcome to “upward volatility” as Bitcoin is expected to see a very positive week after the changes made in the Eurozone on Sunday.
The EU continues to show a combination of populist anger and an overall pivot away from the globalist EU governance model as Austrian and Italian voters demand changes that should help Bitcoin close the year on a high note.
In Italy, Prime Minister Matteo Renzi was forced to concede defeat to the voter referendum of “no.” Exit polls showed massive dissension from his position and a “landslide” in some areas against him. No more than ninety minutes after the polls closed in Rome did he see the writing on the wall and offer his concession statements.
Ditching euro on the agenda
Beppe Grillo, the leader of the populist Five Star Movement, said on his blog that an election for leadership needs to happen as soon as possible. This would benefit his party, capitalizing on the voter sentiment, and potentially creating another national populist success story
“We need five days of work. We propose to all to start working on it tomorrow in order to have a new electoral law within a week. We need to vote as soon as possible. Political parties will do all they can to prolong this indefinitely.”
The referendum was seen as a vote for or against staying in the EU. The defeat for Renzi could make way for the Eurosceptic Five Star Movement (MS5), an anti-EU political faction, to gain power. The party has pledged to call another referendum if it gets into office, this time on ditching the Euro for a return to the Italian Lira.
Frexit is an option
This leads into next year’s elections in France where presidential front-runner, Marine Le Pen, has pledged to hold a “Frexit” referendum should she win next year’s elections.
Italy is the fourth-largest economy within the European Union, which is currently the world’s largest economy. The European Union’s GDP was estimated to be €16.5 trillion in 2016, according to the International Monetary Fund (IMF), representing over 22 percent of the global GDP. With the defection of the United Kingdom earlier this year, and a possible rejection by France in next year’s election, the implosion of the European Union concept and its currency appear to be in a position that may come to pass, resembling a house of cards scenario.
Bitcoin has been seen and used as a worldwide economic “safe haven” ever since the Cypriot banking crisis in April of 2013. Bitcoin values have soared as the strength of Eurozone national currencies, problems in India and the strength of the Euro have fallen in stages. This has extended to other recent European national downturns, including Greece last year and Great Britain earlier this year.