- The pound drops to a new record low after the UK stressed more tax cuts.
- Crypto investor Lark Davis compared the dropping GBP to a ‘Shitcoin’.
- The Bank of England is expected to make a move if the situation gets worse.
The British pound (GBP) plunges to a record low after the UK government vowed to assert more tax cuts, which fuels uncertainty that will bring new tax policies that will affect both equities and cryptocurrencies.
In a tweet, popular bitcoin and crypto investor Lark Davis told his 1 million Twitter followers how troubled he was with the plummeting price of the British Pound over the US dollar, comparing it with a ‘shitcoin’.
To better understand Lark’s tweet, the term ‘shitcoin’ stands for a cryptocurrency with little to no value or one that has no immediate or visible purpose. In short, the coin is garbage. It is often used to describe altcoins that don’t bring anything new to enhance the technology they use for their operation.
In an article published by Bloomberg, the currency’s discharge started on Friday when the government revealed its “Growth Plan,” which throws away the top level of income tax and slashes a percentage point upon basic rates but upturns an increase in the National Insurance payroll tax.
On Sunday, Chancellor Kwasi Kwarteng disclosed on BBC Television that he will not comment on the market movements. However, the Chancellor’s “more to come” response to tax cuts ignites the calls for aggressive rate hikes from the Bank of England. The plunging of the Pound also shows that the markets lost their confidence in the UK.At the time of writing, one British pound is currently trading at 1.072 per one US dollar, according to market tracker TradingView.
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