Today is the day for votes to be cast for Britain’s next Government with eyes set on either Conservative leader Theresa May or Labour leader Jeremy Corbyn to be the next leader of the country.
But how will the outcome of the election impact Ethereum, if at all? Let’s take a look.
Effect on the Great British Pound
No matter what the outcome the election will have an effect on the value of the Great British Pound. There is really no way of telling whether this will be good or bad, although historical data suggests that the value of the pound will drop.
This morning the value jumped up to $1.2980 which is the highest in more than week.
For now we can witness Sterling (GBP) reaching higher rates of volatility than usual. Not particularly alarming to the Crypto investor but fairly alarming for a nationally adopted currency.
Of course, if the value of the pound drops then the GBP/ETH value may artificially increase and vice versa.
How GBP fluctuation can alter the cost of Ethereum
In December 2014 the Ruble dropped hugely and it was rumoured that many Russians began buying into Bitcoin as a means of keeping their money safe.
It’s unlikely that this event would be repeated with Sterling as the UK isn’t in a financial crisis like Russia was at the time, but it’s still something to keep in mind.
The value of the Great British Pound will most likely drop regardless of the outcome and that will have an immediate effect on the buy in price of Ethereum to those trading in GBP. This may cause a sudden profit taking from inexperienced investors causing a fall in the price of Ethereum, albeit only for a brief period and only of a very small amount.
Final result was a Hung Parliament: neither party won enough seats to be the party in power and so now negotiations on which parties will team up to get that majority begin.
Chris Barnett raises this very good response to our article:
A response that inspires confidence in the future of Ethereum by Martin Buuhh: