Bitcoin is an alternative in times of trade wars

The trade war between the states continues to aggravate, creating uncertainty in the future.

The trade war, initiated by President Donald Trump against China, Europe and other countries, today seems to be not stopping, and it is only gaining momentum. In essence, China claims that the US launched the “biggest trade war in economic history.” As a result, The Wall Street Journal reports: “President Xi Jinping charged various levels of government with preparing for a full-fledged trade war.”

According to David Dollar, a scientist at the Brookings Institution, “… a strong US economy will protect against trade warfare and the majority will not feel any immediate economic pressure.” However, some of the side effects of a trade war are already manifesting themselves, creating uncertainty.

Apple Chief Executive Timothy D. Cook, worried about the risks that the trade war for his company is, calling for “more calm country leaders.”

Increasing taxes, various fees, tariffs, accelerating inflation as a consequence of trade wars, cause great harm to all sectors of the economy and production.

History shows that in times of crisis, investors prefer more reliable assets in order to minimize financial losses from economic uncertainty and inflation.

Inflation in the United States this year may reach 3%, the highest figure for the past 10 years. During trading it, the purchasing power of money is falling, and we are seeing rising prices.

Brian Kelly (top manager of hedge funds) expresses his own opinion on this: “During the crisis, I want to have a deflationary, reliable, non-influential political game. Look at Bitcoin’s course in the last few days…”

Thus, investors, anticipating the crisis and inflation, are likely to turn to deflationary, reliable assets such as bitcoin. Bitcoin is essentially inflation-proof because of its limited amount. Thus, Bitkowan may soon begin to demonstrate the growth of the course, as a consequence of the desire of investors to protect their wealth from the harmful effects of trade warfare.

But the thing is that bitcoin is available to everyone, and not just to large foreign investors. Anyone can own a bitcoin, store in the bitches the value of the sold goods or their own work, thus protecting the value of their lives from the theft.

Will the trade wars of the states affect the bitcoin course, in what direction? We are waiting for your opinion on this in the comments…

Bitcoin is an alternative in times of trade wars обновлено: September 9, 2018 автором: SchBit