With the Brexit hammering global equities and currencies, bitcoin has bucked the trend, jumping almost 10 percent immediately post-Brexit, lending some legitimacy to the cryptocurrency.
Although the unregulated alternative to cash money is considered high risk, in part due to its volatility, Peter Smith, chief executive of Blockchain, a bitcoin wallet, said the cryptocurrency was a better bet than regular currencies.
“If you had allocated assets into bitcoin five of the last six years, you would’ve done better than your local currency,” Smith told old CNBC”s “The Rundown.”
“Bitcoin, right now, is more stable from a volatility perspective than both the euro and the pound, which is a great thing for bitcoin and maybe an indictment of the euro and the pound.”
The pound has dropped about 10 percent against the dollar since U.K.’s referendum last Thursday when voters elected to leave the European Union. The euro, meanwhile, has fallen about 3 percent.
With millions using bitcoin every month, the user base was substantial, Smith told CNBC on the sidelines of the World Economic Forum’s Annual Meeting of the New Champions in Tianjin.
“For any kind of alternative to the banking system to have attracted millions of users, that hasn’t happened since PayPal,” he said.
Several global banks including Santander and UBS , are conducting real-world trials using blockchain technology for international cross-border payments, a move that could make the process faster and cheaper.
Blockchain works like a huge, decentralized ledger for the digital currency bitcoin, recording and storing every transaction on a global network so it cannot be tampered with.