The trade battle could help Bitcoin

in LeoFinance20 days ago

The trade war could help Bitcoin. Believe it or not, this could happen. In the last few hours, we've seen the European Union launch new tariffs on the United States. While the Union has done everything slowly and weakly, that doesn't mean it won't have repercussions. Even the American administration could respond with another increase.

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This is what has happened with China, and we're already at 104% in the US and 84% in China. But the Chinese have used another element they've traditionally used if they see their economy falling: devaluing their currency, the Yuan. This quickly makes their companies competitive. They can do this because it has a fixed exchange rate that they can fluctuate at will.

This can be useful, but it's dangerous and has multiple consequences for their economy. So they could face many difficulties if they prolong it over time. But above all, it impoverishes their citizens, who are forced to buy assets that maintain their value, such as US bonds or gold. Under the current circumstances, bonds may not be the best option for the Chinese, and this is where Bitcoin could play a key role as a store of value for millions of Chinese.

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