Bitcoin coin is probably the single biggest winner of the US-China trade war, leaving investors completely confused. The stock market is completely powerless for Trump’s possible trade war escalation. In the case of stock marketing investments, this creates a serious trust deficit. The prospect of raising interest rates at this time seems promising, so investors do not mind pulling funds out of the stock market and reintegrating them into bank accounts.
However, if Trump continues to follow the same path and the US-China trade war is further escalated, the Fed will not be able to raise interest rates further.
During these periods, we have seen gold as an asset. However, this does not seem to be the case. Gold has lost its appeal, and now investors can choose to invest in digital gold without traditional gold problems. Although the mainstream adoption of Bitcoin may still take time, Wall Street has begun to enter the game market.
Why do big investors in traditional markets think that Bitcoin is more of a valuable investment than a desire to make astronomical data? In the eyes of them, the Bitcoin price has great potential. Until recently, big investors in traditional markets were convinced that they were too late for the game, so they took away against the game. This is because these investors who create and destroy markets are not accustomed to being late in a booming market. However, when they realized that it was too late to stop, they tried to control it by investing in companies that offer cryptocurrency services.
All of this seems to be very effective until the debate is limited to cryptocurrencies. However, investors now realize that the problem is bigger than this.
This is not just about Bitcoin market or the encryption market; it is about the uncertainty of the US-China trade war and the emerging currency crisis, which is the first sign we have witnessed in Turkey, Iran, and Venezuela. This means that these major investors will not only invest in the encryption business but also must purchase actual coins to hedge against the global currency crisis or the trade war between China and the United States.
The possibility of a further escalation of the US-China trade war is very large, even though it has caused great damage to both economies. This is not just some stupid arm twisting or selfish urinating game. All of this begins with China’s export potential posing a threat to the United States because it means that China will soon surpass US GDP and thus become a global superpower. In 2017, the US GDP was 19.4T, while China’s GDP was 12.0T. However, according to the inference that China’s growth rate, China is expected to surpass the United States in pounds sterling as early as 2028.
In addition, China is trying to expand its export range through its Belt and Road initiative. The United States is a big obstacle. The fears of both sides are very real, and large-scale conflicts between the two world powers will continue to affect most markets in the foreseeable future.
In this case, major investors and the general public around the world will turn to Bitcoin to hedge their bets and prevent economic setbacks and disparate fiscal policies by governments that have failed in the next few years. If you want to get more first-hand Bitcoin news, please do follow me.