The world economy floundered Friday following Great Britain’s shocking decision to exit the European Union — but the bitcoin is proving that every action has an equal and opposite reaction.
Even as stock markets and world currencies flailed at the results of the Brexit vote, the bitcoin suddenly spiked in value, surging past $650, up $100 from the previous day (when it still seemed possible that the EU could stay together). Because apparently, the only thing people still have faith in is a virtual currency.
For perspective, as of Brexit morning, the pound went down 6.44 percent against the euro and 10 percent against the dollar. But bitcoin continued its upward trajectory, increasing 7 percent in the last seven hours of trading. At day’s end, the price of bitcoin had gone up 8.7 percent, and hit a high of $680.19, according to Coindesk. “We are seeing … almost $100 million traded in the past 24 hours, it’s two or three times compared to a slow day,” said Bobby Lee, chief executive of BTCC, one of the largest bitcoin exchanges, in an interview with CNBC.
Of course, bitcoin’s value is notoriously volatile, having recently plunged 25 percent following a two-year high on June