Europe is witnessing a major slump in its economy owing to the political chaos in Italy, causing investors to run to safety that is forcing borrowing costs to drive up. This, in turn, is leading the investors to shift their priorities to the cryptocurrencies that will lead to their much wider adoption. We might be in a Bitcoin Revolution after all!
Europe’s third-largest economy undergoing political turmoil
Just after three months of elections, the current Italian government is going out of the picture. Moreover, the country is looking forward to holding repeat elections in July.
The political scenario has drawn much heat as the Prime Minister so asked to hold the office loses a secure majority support from the major political parties to form a stop-gap government. This means the country is ending up in an utter state of unrest among the people as well as impacting economies, so related.
The ongoing plunge of Eurozone towards an economic crisis is to a great part in the wake of recent happenings in the Italian economy.
Political chaos in Italy, one of Europe’s biggest economies is expected to have a crushing effect on the economy of Europe as well. The reason behind the same is that the previous government sought to make high returns owing to the high-interest costs. This, in turn, is now forcing investors to be in a state of withdrawal as it continues to decline at an alarming rate.
The current situation makes the Italians being wary of the high borrowing costs that have dawned upon them in wake of the upheaval so witnessed.
On the cusp of the financial crisis
Italian political and economic turmoil has started taking effect as bank shares drop down. These shares have further dragged down Europe’s main share markets. At the close, the UK’s FTSE 100 fell almost 1.3%, while Germany’s Dax was down 1.5% and France’s Cac 1.3% lower.
Giuseppe Sersale, a fund manager at Anthilia Capital Partners said:
“It’s a market that is totally in panic”. He further noted “a total lack of confidence in the outlook for Italian public finances”.
Mohamed El-Erian, the chief economic adviser at Allianz in the US, said: “If the political situation in Italy worsens, the longer-term spillovers would be felt in the US via a stronger dollar and lower European growth.”
Cryptocurrencies are the only way forward
In the light of the political turmoil in Italy, the investors seem to shift their investing patterns. People are increasingly relying on the cryptocurrency market that is in complete isolation with the economic fluctuations and offering a safer option.
It has been seen that economies with financial crisis took cryptocurrencies at a much faster rate. Venezuela, Iran, and Zimbabwe are some of the prime depriving economies that in recent past has eagerly adopted bitcoin among other digital currencies.
With Italy facing serious political and economic issues that are more than likely to affect Europe as well, Bitcoin will only become the go-to option.
What are your views on the financial crisis hovering on Italy’s economy? Do you think this will lead to a Bitcoin revolution? Share your thoughts with us!