How will a trade war affect cryptocurrencies? How will cryptocurrencies affect a trade war?
So I think it's safe to say we are heading to tumultous times in the world. More sanctions, more tarrifs, more war.
What will these battles do to cryptocurrency?
Will cryptocurrency change the way these battles play out?
These are the questions I would like to pose to everyone. I don't know all the answers. I can't. There are too many variables.
In my opinion these trade wars we are approaching will be very good for Bitcoin and for cryptocurrencies. Inflation will rise, crypto will become that much more inticing. The fact that I can be involved in a decentralized corporation with people from all the other countries without government as an intermediary is appealing and it will only become more appealing.
I suspect having the alternative of buying a coin that is not involved in these trade wars, that is not hyper inflating to pay for beauracracy. That transcends the borders that makes enemies of neighbors.. will have a large inpact on the way that a large trade war will play out.
I think a larger inflation of fiat currency worldwide will leave the solutions more bare for the average person. Cryptocurrency will be that solution.
Where that leaves the price, is probably much higher than it is now. 1 Bitcoin will always be 1 Bitcoin. I look forward to the day that fiat currencies judge themselves by Bitcoin. Like Bitcoin price today is measured by the US dollar. The dollar does not have a stable supply, it is not a good judgement of value.
What do you all think? How will a trade war impact crypto? Will the trade war be different since it is the first in the age of decentralized money, of decentralized corporations?
Woot woot,
Cryptocurrency will, “transcend the borders that makes enemies of neighbors.” Blockbasis couldn’t agree more! We believe cryptocurrency will finally be able to unite the world as a whole. We strive to make cryptocurrency accessible to all and believe cryptocurrency and blockchain are an alternative to a debt-based, trust-dependent, financial system that is on the brink of collapse. The question remains, “Will cryptocurrency replace fiat currency?” We sure hope so!
I think our time to shine is comming
John Bolton was just appointed National Security Adviser, after the tariffs were announced. If Trump's statement that it was necessary to retain our steel manufacturing capacity for national security at the time doesn't show that this isn't a trade war so much as a prelude to massive war, Bolton's appointment should.
This isn't a trade war.
It's war.
We cannot expect to provide war materiel for our troops in the field when the materiel is being supplied by the enemies those troops are killing. We'll have to make those weapons ourselves.
I am liable to agree. I feel war in my bones.. and not just some shit war on terrorism, or drugs. Something bigger.
I'm not toatally sure, but I suspect the trade wars are hinged to the new Chines petroyuan. This is a real challenge to the US dollar. Many nations resent the control the US dollar has, being the required exchange currency.
The US Dollar is in trouble, IMO, and that is going to benefit crypto. As you have pointed out previously, some cryptos will be controlled by existing power structure, but some will remain decentralized. These are the ones that can significantly impact our little lives.(which happen to be rather important to us little people)
Indeed. I'm from America and even I sort of resent the dollar lol.
I have been hearing whispers that even JP Morgan is debating on having a public or private ledger. Or both even. I prefer everything to be as decentralized as possible though.
Interesting question. My own guess is that it will have a minimal impact because the market cap of cryptos is still quite small and most people are HODL-ers lol.
If the trade wars lead to higher inflation and higher interest rates, then like you said, bitcoin and the other top altcoins should do well as an inflation edge. The smaller coins might get hit due to the general FUD though.
Good point about the smaller cap coins. No matter what happens, not all coins will survive. I could see people wanting to speculate a lot less as things get worse though, and the large majority of those low cap coins are steeped in speculation.
I'm not as sure that we are headed for trade wars, but then, I haven't been listening to the mainstream media (or the alt media, for that matter) to know how much hysteria-whipping they're doing out there. Strangely, I've been less stressed about things since I started paying most of my attention to Steemit. :)
However, I believe that you are right that if something did manage to escalate, that crypto would be a major beneficiary.
I just think there's so many behind the scenes machinations going on that what we hear and what we're told aren't anywhere near the truth. Trade wars aren't in the best interest of anyone involved. Our friendly trade partners aren't going to make much of a fuss (regardless of the size of the proposed tariffs) because Trump has already said he will work with them if they work with him.
As far as China goes, that's been a delicate balancing act for all parties since they started producing so much of our goods and taking on so much of our debt. How that's going to all fall out is anyone's guess, because we're essentially propping up each other in a continual rob Peter to pay Paul scenario.
ha ha Aint that the truth - a lot of talking heads out there looking to divide us all for a view and a little add cents. It is hard to listen to any "media/alt media" cause they are usually generating recreational outrage for the masses to make a buck for themselves. Like Jerry Springers but shilling for a Left side or a Right side and when you don't pick some side, it almost certainly means you don't care about your country for not listening to the talking heads outrage.
I was pretty happy to find steemit. Sadly I think it is getting inundated with talking heads that found they can make a buck here too. :(
Yeah. I discovered a long time ago that what was important to me—truth, facts, knowledge, solutions, doing things for the right reasons—wasn't what the media and the politicians found important. With them, it's all about perceptions and winning. Whatever the cost.
As far as the talking heads here go, if they bring their followers with them, we're supposed to be all for it. Regardless of their philosophies and what that means for the blockchain and potentially blockchain governance. I don't think everyone is ready for decentralization and freedom. I think there's plenty here now who like control. So, that will be something to watch, and attempt to head off, when this accelerated onboarding opens up the floodgates.
Steemit is a good thing to focus your attention to anyways. I myself try to stay away from the news in a sense. I just speed read through most of it unless I find something that I want to know more about. I do however read the headlines on CNN, FOX, Drudge, Google, Pravda, Al Jazeera, and the South China Morning post. So I see what the propaganda machines for all the super powers have to say.
Indeed we are in a rob Peter to pay Paul scenario. Eventually the tax man cometh though. What that means in this situation is hard to say, it won't be good for the one who owes though.
That's just it. I think our international mutually assured destruction plan has us tied to one another so well that the debtor will be indistinguishable from the debt holder. Everyone owes everyone else something. Trying to collect will probably amount to the equivalence of an invasion because the only thing of worth left will be the land and what's on it.
I have family members who keep sending me stuff, so I've not really been missing combing the headlines. I also get snippets of things on the radio when I'm in the car, so when I need more information on I go looking for it. It's actually been a lot less stressful this way.
The so called "trade wars" you are afraid of, will have little impact on the global economy.
The size of the tariffs are small. The items/countries impacted will still these goods using 3rd party countries.
It is all a large PR move by Nation States to give reason for inflation, that they need to inflate their way out of debt.
Fiat currencies will continue to have more and more of their money printed.
Cryptocurrency is a great spot to hide out of this.
Nation States will be dragged to the Crypto party kicking and screaming. This is the early stages of a global movement about freedom. Don't try to game it. Try to partake in it.
I use Litecoin to pay for as many things a day as i can. I also accept Litecoin for my services.
Ignore the FUD.
All good points. Though i'm not sure that it will have little impact on the global economy. So long as the dollar stays the world peg, you are correct. I'm not so sure they need a reason to keep inflating shitty fiat currencies anymore, it has become the norm.
I think these tarrifs will become a boiling point. That they may even culminate in some type of new age Boston Tea Party. We will see how it all plays out I guess. there are lots of things happening geopolitically, not just these trade wars.
I also agree that crypto could become an enticing place to hide. Won't that fact expedite the inflation of fiat? Never before did we have a decentralized option to hide in during volatile times. So whatever happens, it should be interesting.
Thanks for the words
with the recent stock market plunge, many may begin to fear a bear market is coming, which could potentially bring in more crypto investors to diversify their portfolios and holding a bit... idk just a quick thought that I had pop into my head
Regards,
@conradsuperb
I agree. Before when markets were volatile, the only real safe assets were precious metals. I wonder to what degree people will consider crypto to be safe. More safe than stocks or bonds, less safe than precious metals is my guess. Which would mean a lot of people might jump on board.
Who knows though, we have kept the dollar afloat for longer than I thought we would already. I expected a canada/america/south america hybrid coin already.
I think there will still be a fear for many to jump on board the crypto-train just due to the speculative nature of this space, but also the fact that hacking seems to be something worth noting as rather 'scary...'
I guess we will see & only time will tell... see ya around doc
I'm not anticipating much of an effect. I doubt very much that the trade wars will come into play once someone explains how economics and business works to Trump. He has very little knowledge in the area even though he claims he does. He just says things but actually does very little. Its a shame that markets react to his little tantrums.
Ehh, I agree we may avoid a trade war. How can we avoid the unending accumulation of debt though? Or the current housing bubble in the US again. The stock market, that hasn't had a real correction in forever. There are too many problems to avoid economic turmoil sometime in the near future.
Very volatile times indeed, I think the metal markets and even lots of bartering along with Crypto may become the new norm.
The system is unsustainable and with that, necessity will be the creator of adaptation. imho
b.a.
I'm fine with the new norm you just described. Crypto being here at the time of necessity is perfect for its adoption. As long as everyone doesn't have to adapt to 10 or 20 transactions per second lol!!
lol , right? I was actually looking at the mechanics of all of it and it's pretty interesting but also yeahhhhh about transactions
pretty sure there already will be 'solves' for that