Businesses in and around Plymouth need to be more flexible than ever before. This is not just as a result of changing tastes and needs but also as a result of changes in the way people pay for goods and services. In the UK, investing in cryptocurrency, the digital alternative to physical funds, is becoming more prevalent.
Cryptocurrency is a type of money that exists in a digital state with investors using online programs and exchanges to trade in real cash for code. It has had something of a rocky time in the press due to its volatile nature, however, more people are now getting involved in the trade than ever before. But why is that? How could this affect local trade and business, and should you consider investing in bitcoin or other cryptocurrencies yourself?
Cryptocurrency in the UK
Cryptocurrency has had something of a shaky start in the UK. At the time of publication, action by the government is yet to take place on regulating this digital money. What's more, the FCA has recommended that they establish a blanket ban. There are concerns from some quarters that British investors are at risk of being misled with regard to the risks involved in trading with cryptocurrencies; however, that has not stopped some British investors from embracing the concept of digital money.
Statistics suggest that, at the very least, 20% of British millennial investors are trading in bitcoin. With millennials being the first generation born into the digital age, it is hardly surprising that their demographic is leading the way in adoption of the new currency.
But what does this mean for everyone else? Does the lack of regulation make cryptocurrency unsafe to trade in? How can we use bitcoin and other money to our advantage? Let’s take a closer look.
The future of cryptocurrency
Regardless of where the UK law currently stands on cryptocurrency, there is no denying that interest is still on the rise. Some UK businesses have chosen to accept bitcoin, for example, alongside physical, legal tender. Trading in bitcoin is perfectly possible in the UK, however, HMRC remains a little shaky on where it stands with regard to the currency. At present, all crypto investments are subject to capital gains tax.
Bitcoin and other such currencies are now being used to invest in everyday things. For example, people in the Plymouth area are already investing in property using digital currency. The flexibility of bitcoin, as well as its volatile nature, has inspired people to try to make some money by trading it. Be in no doubt that investing in cryptocurrency does carry risks, however, it is emerging as a way to pay for everyday goods and services.
Does this mean that Plymouth businesses will need to adapt and start accepting bitcoin? Possibly. The UK government’s uncertain stance on cryptocurrency has made the subject complex for British firms and businesses to navigate at this time. However, with uptake in digital money use on the rise, it will be prudent to keep an open mind. We will need to see how the FCA rules on cryptocurrency in the long run.
Why are British people investing?
Despite the ups and downs of cryptocurrency markets, it’s safe to say that British people, the Plymouth public included, are seeing the benefits of financial trading online. Trading in bitcoin, for example, has never been easier. Many people use online services such as the Bitcoin Code program to manage and monitor their investments. You can now use bots to invest autonomously if you wish. This reduces investment risk in such a volatile range of markets.
Plymouth citizens invest in cryptocurrency because it is quick, simple and flexible. It is also considered a private way to manage money. In addition, cryptocurrency doesn’t start and end with bitcoin. Other digital currencies are emerging all the time. Therefore, there’s never been a better time for investors to really diversify their holdings.
It will only be a matter of time before businesses, shops and stores in Plymouth start adapting to the bitcoin revolution. Lack of certainty from the FCA and British law prevents businesses from making any confident moves, however, it is worth noting that the trends already show where things are heading. Will this mean that the British pound will have a serious rival? That is highly unlikely! However, the UK may wish to follow the Australian model if they wish to appeal to modern investors.
Should I invest now?
There really hasn’t been a better time to invest in cryptocurrency. Be sure to read guides on the best exchanges and programs, and do tread carefully. The markets may be volatile, but you could generate enough money to put down a deposit on an asset you really need.