The trade war between the United States and China is gaining momentum. Ignoring the benefits of free trade, both countries alternately impose import duties and erect nontariff barriers. As a result, exportoriented industries, consumers and stocks of many companies are under the slogan of protecting the national producer.
There is an opinion that the trade war unleashed by Trump will accelerate the arrival of a new financial and economic crisis. At the same time, Morgan Stanley analysts are convinced that in response to the almost inevitable recession caused by the trade opposition of the two giants, the central banks will certainly react by easing monetary policy. The consequence of this step will be a stimulating export devaluation of currencies, which at the same time will accelerate inflation.
As you know, in countries with high inflation, the demand for Bitcoin is high, and the cryptocurrency itself is used not so much as a tool to diversify the investment portfolio, but as a means of preserving value. Thus, it is possible that the long-term consequences of the trade war now raging will be not only global inflation, toughening of currency restrictions, recession of economies of various countries and stagnation of the stock market, but also an increase in investor interest in digital currencies.
Bitcoin price increase may be one of the outcomes of the US-Chinese trade war
By ffetuo | CryptoBoom | 27 May 2019
How do you rate this article?
0
ffetuo
love is my family
CryptoBoom
All the most interesting from the world of cryptocurrency
Send a $0.01 microtip in crypto to the author, and earn yourself as you read!
% to author / 80% to me.We pay the tips from our rewards pool.