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Your Scotcoin is now worth more!

SCOTCOIN INCREASES IN VALUE: Following a hike in the value of Bitcoin, Scotcoin too is enjoying an uplift in value… But how do it actually work?  With respected financial journalists such as Ed Conway of The Times writing headlines such as “Bitcoin could turn capitalism on its head“, economists now predict that cryptocurrency has the potential to bypass governments and the digital media giants to become the new power behind big decisions not just in financial markets but in many different areas of life.

How is cryptocurrency valued?

Simply put, cryptocurrencies are worth what someone is willing to pay for them – just as any other asset is valued, such as house prices or stocks or traditional currencies.

In the case of cryptocurrencies the value is usually derived from exchanges (very similar to traditional stock exchanges) where bids are placed for buying and selling an asset and an average value is therefore established for that stock.

As a Bitcoin backed asset that uses the Bitcoin blockchain via Counterparty, the rising prices of BTC and XCP thus increases the value of Scotcoin.  So with 1 BTC now costing over £2,000, the price of Scotcoin being based on BTC has gone up.  Effectively your Scotcoin is now worth more!

What sort of an investment is Scotcoin?

So if you bought just £100 of Scotcoin just 2 years ago, it’s now worth over £20,000.  The Scotcoin Project CIC as a non-profit company, will continue to spread the word about Scotcoin, increase the users, find new merchants willing to accept Scotcoin as a trade, and promote the use of cryptocurrencies in Scotland generally.

Where can I buy Scotcoin?

When The Scotcoin Project first launched, one of the main questions we got asked was: “How can I buy Scotcoin?”  People didn’t necessarily want to set up trading accounts and buy Bitcoin then transfer it into Scotcoin, so we set up a very simple £ to SCOT exchange.  You can access it here and buy directly from £ to SCOT:

https://exchange.scotcoinproject.com/

The EU Referendum and Your Money

Today Britain will vote in the EU Referendum. The outcome of the vote will decide whether or not we remain as part of the European Union. In the lead up to the vote, the pound sterling has become extremely volatile. The currency exchange rates, driven by the huge level of trade uncertainty have fluctuated wildly in the last few weeks. With such an uncertain future lying ahead for the pound, many are looking to find safer homes for their savings. Cryptocurrency has the potential to be the perfect safe haven.

Fluctuation of the Pound

Since the beginning of the referendum debates, the pound has steadily fallen against other currencies. It has fallen 12.5pc against the Euro, 6.8pc against the US Dollar and 11.4 against the Australian. Much of this drop can be attributed to the fear of a possible Brexit. If Britain vote to leave the EU, our trade deals will have to be renegotiated. This applies not only to EU trade deals but also to those with other countries, which we rely on EU deals to reach. Paving the way for a post-EU Britain will take time. In the meantime, many may opt to sell off their sterling to mitigate the risks posed by the uncertainty.

Buyer Behaviour

Currency outlets throughout the UK have reported a surge in exchanges since the weekend. The Post Office Travel Money has reported that sales of foreign currency have risen by 48.8%. Online purchases have surged, with a 381% rise. The majority of buyers are exchanging their pound sterling for the Euro and American dollar. Some experts have suggested that the pound could even fall to parity with the Euro.

Cryptocurrency as a Safe Haven

Given the instability that we’ve listed above, cryptocurrency is becoming a far more favourable currency option. The main reason for this is that digital currencies such as Scotcoin are not strongly correlated with either the stock market or national currencies. The same cannot be said for the pound sterling. Therefore, now would be a perfect time to hold funds in a digital currency.

Scotcoin vs Traditional Safe Havens

In times of global financial strain, people look for safe havens. Traditionally this has meant stable valuables. Basically, items which traditionally appreciate in value regardless of the global financial climate.  However, these often have many drawbacks. The most obvious problem with holding cash in fixed assets is their lack of portability. Cryptocurrency has no such barriers. It can be moved anywhere quickly and with little effort. As Scotcoin is a peer to peer system, no banks are involved. Therefore, no operating hours are imposed. You can make payments whenever you need to.

In short, your money is protected from outside political factors affecting its value. You can also use the funds as and when you need to. Digital currency such as Scotcoin offers liquidity. At present, they are also not subject to many tax impositions.

To sum up, the EU Referendum is sure to have far-reaching impacts on the UK economy. The pound sterling has already taken a hit which will only be compounded- at least in the short-term- should Britain chose to leave the EU. For those looking for a safe haven which also offers liquidity, Scotcoin presents a perfect solution.