Forget about a trade war! We do not need any news to fear only because one country is pissed off by another and everyone is suffering.
What is international trade?
International trade is when one country expands its business globally and competes with another country's regional business.
Comparative advantage
The idea behind international trade is for one country to focus on one specific type of goods they are good at and exchange for others with their products other countries are good at producing.
The flaws of the assumption
The assumption is that all countries are happy with what they are doing.
They are not! Every country wants to develop and become powerful if it can. No one wants to make shoes forever. If they can make cars, they will make cars to trade for shoes.
Global trades turn to global protectionism
Every country develops at different speeds and phases. Some countries are more advanced than others. Their cost of living is higher which reduces their ability to make basic goods. Other countries are less developed with lower living standards. Those countries can produce goods cheap which supplies to developed countries.
People love cheap goods that result in less competition domestically. Laborers may lose their jobs and lobby to change regulations to protect their jobs which results in higher taxes on foreign goods. It then brings the cost of living up domestically as a lose-lose solution.
China-United States trade wars
That was exactly what happened during the trade war.
The US claimed China unfairly traded and was a currency manipulator while China dominated global trade and became a global manufacturer.
Because too reliant on China as a manufacturer, any political opinion that triggers disputes with China may affect the global economy.
Currency war
The trade war dispute is a currency dispute. The US wants to buy more products from China but they also want to protect domestic labor with a high living standard.
These two contradictions can not be made at the same time.
A stronger dollar will result in buying more products internationally but it will reduce its exports of products that will slow domestic growth.
A weaker dollar will buy fewer products internationally but increase exports and expand domestic growth.
Cryptocurrency may be a solution to resolve global trade - a win-win solution
Using cryptocurrency to trade internationally will resolve strong or weak currency arguments because the cryptocurrency is to use to purchase goods.
It will not be influenced by both sides of political or economic influence by only its technology and networkability to facilitate the trade.
It is a win-win solution.
In conclusion
It felt like the trade war has passed behind us because we got crypto that can resolve the issues. The world will move forward with internet globalization that fiat currency may not influence anymore.
Related articles:
Stablecoin is Not So Stable
CBDC: Stablecoin 2.0 or Stablecoin Killer
Chinese CBDC: the Ultimate Financial Weapon or Just another Copycat
DeFi Swap: Great Returns come with Great Cost
CBDC vs Cryptocurrency: the War of Privacy
Inflation vs. Bitcoin: How Speculation to Hedge Inflation has Failed in Short Term but may Create Opportunity in Long Term
Game of Three Kingdoms: CBDC vs. Cryptocurrency vs. TechCoin
Gold vs. Bitcoin: Digital Twin or Enemy
Volatility of Bitcoin: Threat or Opportunity
Lesson Learn from Robinhood IPO: Era of Crypto Exchange Comes to an End or a New Beginning?
Hypothetically, What if the Fed Fails to Control Inflation, Will Crypto Save Us?!
Stablecoin: We Ever Need Them More Than CBDCs
China FUD: Are We Done Yet?
SEC vs. Ripple: the Endless Game of War
SEC vs. Defi: What is the goal of the Defi?
City Coins: Are they the Era of New Coins?
Ethereum London Hardfork: How Hard does It Actually Fork?
Did the U.S. government just thumbs up on Bitcoin and down on Ethereum after the London Hardfork?
The End of Era for Crypto Exchange Platform?!
NFT: Digital Solution or Delusion?
NFT: The Future of Gamers' Assets
Is Bitcoin Untraceable Anymore?! It Depends!
Why Crypto Got So Political Suddenly: The Beginning Tale of Government Crypto Surveillance Program
Where are We Position Crypto at : the Problem with Money and Wealth
Crypto Hacking: How Did it Really Happen?
Bitcoin Mining Recover?! The Chinese vs. The U.S Strategy of Blockchain
The Legendary of Shitcoin: Meme to the 🌓 or Unique of 💎 or Simply just 💩
Defi: A Rainbow 5-Layers Cake
Crypto Economy: the Untold Speculative Financial System We will Live?
Red Alert: Lesson Learns from the Nearly Cashless Nation
Jack Dorsey’s Ambitious: Twitter wants to Become a Place of Freedom of Speech
What Categories Does Bitcoin Belong to or Does it Really Matter?
Quantum Financial System: The System Lost Itself in Quantum World
Doge 2.0: Who Let The Dog Out?!
Legendary Hacker: the White Hat into the Rescue
Crypto Hot Hub: The Best Place to become Crypto Incubator
EIP-1559: The Future of Ethereum Economy
Break the Fourth Wall?!
Robot Sucks: How Lousy Jobs AMMs Did to Ruin the DeFi
The Future of Cardano: as Clear or as Uncleared?
We Are Short for the Dollars: The Dollar's Liquidity Issue
Currency Comparison: Bitcoin vs Dollar
Patent the Blockchain: the Nonsense Action Shows a Worry from Big Tech Companies
-------------------------------------------------------------------------------------
Disclosure: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose cryptocurrencies are mentioned in this article. This information is only for educational
