• Crypto Lists
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Altcoin
  • Advertise With Us
  • Join our Telegram Community
Newsletter
ItsBlockchain
  • Bitcoin
    Is the Russia-Ukraine War the Biggest Test for Bitcoin? Market Update

    Is the Russia-Ukraine War the Biggest Test for Bitcoin? Market Update

    Bitcoin ETFs could have the same result as CME group futures launch in 2017

    Bitcoin ETFs could have the same result as CME group futures launch in 2017

    featured image

    How Bitcoin can be hacked?

    keep bitcoin safe

    Keep Your Bitcoins Safe: All You Need to Know About Crypto-Cyberthreats

    featured image

    Bitcoin IRA – Everything You Need to Know

    A trillion dollar tsunami is about to hit Bitcoin

    A trillion dollar tsunami is about to hit Bitcoin

    featured image

    Why Bitcoin will always be the number one cryptocurrency? Explained

    Crypto markets mirror Wall Street’s fall- Loses 100 billion in 24 hours and Delta Plus Variant creates extreme fear

    Crypto markets mirror Wall Street’s fall- Loses 100 billion in 24 hours and Delta Plus Variant creates extreme fear

    On-chain shows Divergence against Bearish Price-Action, But Bitcoin continues to stay in the Re-Accumulation Phase

    On-chain shows Divergence against Bearish Price-Action, But Bitcoin continues to stay in the Re-Accumulation Phase

    Trending Tags

    • Crypto Gems
    • NFT
    • DEFI
    • Crypto Lists
    • Altcoin
    • Crypto Market
    • Guide
    • IBC Capital
    No Result
    View All Result
    • Bitcoin
      Is the Russia-Ukraine War the Biggest Test for Bitcoin? Market Update

      Is the Russia-Ukraine War the Biggest Test for Bitcoin? Market Update

      Bitcoin ETFs could have the same result as CME group futures launch in 2017

      Bitcoin ETFs could have the same result as CME group futures launch in 2017

      featured image

      How Bitcoin can be hacked?

      keep bitcoin safe

      Keep Your Bitcoins Safe: All You Need to Know About Crypto-Cyberthreats

      featured image

      Bitcoin IRA – Everything You Need to Know

      A trillion dollar tsunami is about to hit Bitcoin

      A trillion dollar tsunami is about to hit Bitcoin

      featured image

      Why Bitcoin will always be the number one cryptocurrency? Explained

      Crypto markets mirror Wall Street’s fall- Loses 100 billion in 24 hours and Delta Plus Variant creates extreme fear

      Crypto markets mirror Wall Street’s fall- Loses 100 billion in 24 hours and Delta Plus Variant creates extreme fear

      On-chain shows Divergence against Bearish Price-Action, But Bitcoin continues to stay in the Re-Accumulation Phase

      On-chain shows Divergence against Bearish Price-Action, But Bitcoin continues to stay in the Re-Accumulation Phase

      Trending Tags

      • Crypto Gems
      • NFT
      • DEFI
      • Crypto Lists
      • Altcoin
      • Crypto Market
      • Guide
      • IBC Capital
      No Result
      View All Result
      ItsBlockchain
      No Result
      View All Result
      Home News

      US-China trade war effect on Bitcoin Price

      Gopal Bansal by Gopal Bansal
      September 15, 2019
      in News
      0 0
      0
      US-China trade war effect on Bitcoin Price
      30
      SHARES
      245
      VIEWS
      Share on FacebookShare on Twitter

      There was a time when the breathing sapiens of the globe experienced a war on land. Who thought that the time would change enough that the countries will get into a “TRADE WAR” anytime. From the past few months, the big dominating currencies are getting into fights to make their national currencies strong among the Globe. USD is the highest traded currency over the past few decades and China is surely not in a mood of digesting it. 

      The term “Trade War” is simply a different practicable way of giving limelight of ongoing “Currency Domination War” between the two nations.

      Although, the news came between May 5, this year that Donald Trump, President of the US raised the tariffs on Chinese imports. This news doesn’t stand well for China’s business authorities and they stopped immediately trading with the US-based companies. This sudden, as well as an expected move, made Yuan a six months low in a few weeks.

      The very first thing we need to realize that why Chinese and US trade tension is happening. 

      The fundamental forces have started to collide with each other. To date, the United States has ruled over the entire world with its dollar imperialism. It has controlled the entire oil trade of the world as well as it has ensured that the dollar remains the global trade currency of this globe. Now, this gives the USD an exorbitant privilege.

      Going through the facts, the impressive thing came into the picture is that 50% of all the dollar notes printed by the Federal Reserve is outside the US boundaries. It means that What is Paper for them becomes Money for Others. This becomes a source of extreme power. To China, this thing is giving them inferior status as far as the global economy is concerned; global trade is concerned. In terms of purchasing power parity, they’ve reached nearly to the equivalent status of the US but in terms of economic power, they’re yet to reach America equivalent status and the most reliable way of doing that is only if there Yuan is considered as the currency, as USD is across the world. 

      How China can do that?

      China has formulated a series of measures to reach that status.

      They’ve done a currency swap agreement with the dozens of countries in Africa; in Latin America; in Asia and even in Europe. They are attempting to enable a remarkable variety of arrangements where people’s dependence on the US is replaced by their dependence on Yuan and particularly with Chinese trade. As a result, China is able to carve out a regional influence or a country to country-wise influence and reduced their dependence upon the USD. But in the case, if they have to create a global currency, then they have to challenge a dollar on a one to one basis and that is not accessible for them. So they have been doing a lot of other economic initiatives like Belt and Road Initiative (BRI). The Belt and Road Initiative is the revival of pre-existing ancient silk route with which they are building direct economic links, direct trade links, direct rail links, direct road links with Europe and some different parts within the Asian region.

      In that sense, they are building their economic trade dominance. 

      China has also accumulated nearly 100 tons of gold reserves to buffer against the blows of Trump’s trade war. To get back their national currency on the track, this judgment really provided them sufficient heat to melt down the tariff iceberg. The latest figures also show that the Gold bullion is approximately a six-year high.

      As they are expanding economically in the trade term, America is seeing a serious threat to own status. 

      In terms of manufacturing, America is a declining nation. In terms of demographics, they are also considered as a declining nation and in terms of superior position in Asia, they are also a declining nation. Though they’re declining, that does not mean that China is in a position to replace them. These two Everest sized powers, one declining and one in rising are clamoring for a status which is at present an open field.

      The people from the countries of Europe, Japan, India, Brazil, Russia are in a huge mess on which road they have to take in terms of making a choice between USD and Yuan. They may dislike USD as an imperialist entity but they will never accept China taking the same position. It means this global collision of economic power or monetary power will never result in a smooth transition. The dollar will go down, it doesn’t mean Yuan will take that place. Now in that kind of situation, for a country like India, this will be a great challenge with whom to align, whether to align with USD or with Yuan. This problem will not be a problem for only one country, this problem is for a dozen countries. That question doesn’t have an easy answer.

      In this kind of situation, nation-states are tormenting themselves with a literally impossible choice. If they stick with USD, they’re in a problem and the same goes for the Chinese Yuan. In this unmanageable circumstance, there is only one serious non-political choice they can co-relate to and that is Bitcoin and other cryptocurrencies. They have to give that decentralized and non-political currency a little space to sit in their trade car. If countries start moving just 10% of their foreign reserves from dollar to these cryptocurrencies, this will result in a huge and massive rise for the Bitcoin and other Crypto Assets. Now, the possible question is when it will happen. it totally depends on the type of economic curriculum the countries have right now.

      This thing can probably take the front seat from October onwards and it will start gaining momentum and this momentum will go into 2020 and by the time we reach and cross Bitcoin halving in May 2020, the price of Bitcoin will keep on rising. Where it will stabilize, we don’t know. It may stabilize at $55,000, it may stabilize even beyond that, we don’t know. But, people are only going to see these two big powers colliding and no serious solution coming out of that and foreseen in that kind of eventual conflict.

      Taking a note from the IMF and Bank of England proposed solution

      IMF (International Monetary Fund) already suggested that there should be a different scenario and Bank of England has also come up with a proposition that we should go for a Dollar replacement in the form of a certain digital currency which is called a Synthetic Harmonised Currency. In this replacement, IMF and World Bank should maintain some sort of reserve assets and that digital currency should get its value, The most reliable trending case these days is the way Facebook Libra has got its value against reserve assets. Similarly, Synthetic Harmonised currency gets its value against SDRs (Special Drawing Rights).

      (SDRs are termed as Special Drawing Rights maintained by different countries at IMF.)

      Though there is a political proposal, America will never let that happen. Ultimately this problem becomes a problem of the political agreement. Finally, the cryptographic agreement will win so people will start moving from the lack of political agreement to the existence of the cryptographic agreement. The critical decisions between countries always lead to a rise in the Bitcoin prices as we saw in the Brexit and the Grexit too.

      There is also a surge in 284% in bitcoin trades between the period of 19th May to 19 August this year compared to the period between 22 March to 22 June 2018, just prior to the Trade War.

      The People’s Bank of China reportedly formed a non-government organization to the network which was inspired by Facebook’s recently launched a crypto project “Libra. Taking it in on positive note and with the billions of messenger users being introduced to Blockchain-based payment solutions, we can be sure that every major organization in this world will try to craft a response to this bizarre position. The crypto adoption will possibly decide the winner of these two rivalry nations and it will be a win-win situation for the Global Crypto Assets to boom. This vital public shift will definitely result in rising of Bitcoin and other Blockchain Assets.

      IBC-Transparent-Logo-(1)

      Subscribe To Our Newsletter

      Join our mailing list to receive Cryptocurrency investing and trading recommendations to your mailbox.

      You have Successfully Subscribed!

      Tags: featuredus china trade ware bitcoin
      Share18Tweet5Share2

      Subscribe to get notified on latest posts.

      Unsubscribe

      Related Posts

      Is it Worth buying Luna under five dollar

      Is it Worth buying Luna under five dollar

      by Karthik Guttha
      May 11, 2022
      0

      The crypto market has been through many steep drawdowns in previous cycles, but what’s happening now with the Luna ecosystem...

      58% of Bitcoin Transactions Are Realizing Profits as BTC Falls Below $40,000

      58% of Bitcoin Transactions Are Realizing Profits as BTC Falls Below $40,000

      by Karthik Guttha
      April 13, 2022
      0

      After reclaiming a higher price level and flipping resistance for the support band, bitcoin is once again showing weakness. In...

      Covalent launches decentralized data query network to power web 3.0 infrastructure

      Covalent launches decentralized data query network to power web 3.0 infrastructure

      by Hitesh Malviya
      April 29, 2021
      0

      Covalent, the leading blockchain data provider, has launched its decentralized data query network to power web 3.0 infrastructure. This launch moves...

      nft comics

      The First-Ever NFT Comic was released on Rarible

      by Hitesh Malviya
      March 20, 2021
      0

      Indie Creator Omar Spahi Releases First Full Issue Edition as First Comic Book NFT Format.  The creator of Xenoglyphs releases the story’s...

      Unstoppable Domains Announces the Most Expensive Sale of a Domain Name NFT Ever Recorded

      Unstoppable Domains Announces the Most Expensive Sale of a Domain Name NFT Ever Recorded

      by Hitesh Malviya
      March 9, 2021
      0

      Win.crypto Sells for World Record $100,000 USD  Unstoppable Domains, a company building blockchain domain names, has announced the sale of...

      Load More

      About Us

      We curate the best cryptocurrency projects with the intention of adding value for investors through the process of selecting, organizing, and looking after different projects available in the cryptocurrency market.

      • Trending
      • Comments
      • Latest
      featured image

      List of leading partners of Ripple, and How they use XRP?

      February 2, 2021
      Polygon: The Swiss Army Knife of Web3

      Polygon: The Swiss Army Knife of Web3

      May 27, 2023
      Top 5 upcoming Token Airdrops (Step-by-Step Guides)

      Top 5 upcoming Token Airdrops (Step-by-Step Guides)

      November 22, 2022
      Worldcoin: The Biggest Crypto Scam or Innovation?

      Worldcoin: The Biggest Crypto Scam or Innovation?

      May 18, 2023
      crypto intrest

      How to Earn an Interest in Cryptocurrency: A Beginner’s Guide

      July 27, 2021
      Top 5 DeFi Projects on Tezos

      Top 5 DeFi Projects on Tezos

      December 26, 2022
      featured image

      Top 3 Coins That Have Outperformed Bitcoin This Year

      April 26, 2020
      Polygon: The Swiss Army Knife of Web3

      Polygon: The Swiss Army Knife of Web3

      May 27, 2023
      Worldcoin: The Biggest Crypto Scam or Innovation?

      Worldcoin: The Biggest Crypto Scam or Innovation?

      May 18, 2023
      EIP-4844 Explained | The Biggest Ethereum Upgrade

      EIP-4844 Explained | The Biggest Ethereum Upgrade

      February 7, 2023
      What Blockchain Can Learn From Barnes & Noble and the Jacksonville Jaguars

      What Blockchain Can Learn From Barnes & Noble and the Jacksonville Jaguars

      January 17, 2023
      RINO Enterprise Wallet launches free Community Edition

      RINO Enterprise Wallet launches free Community Edition

      January 14, 2023
      Top 5 DeFi Projects on Tezos

      Top 5 DeFi Projects on Tezos

      December 26, 2022
      Modular Blockchains: The Next Big Thing in Web3

      Modular Blockchains: The Next Big Thing in Web3

      December 12, 2022
      • Top 10 Cheap Cryptocurrencies with Huge Potential in 2021 | Best Penny Crypto Coins

        Top 10 Cheap Cryptocurrencies with Huge Potential in 2021 | Best Penny Crypto Coins

        29624 shares
        Share 11839 Tweet 7399
      • A Mysterious Bitcoin Whale who sold 3000 Bitcoins at 58K$, Bought back 3521 Bitcoins in the last three days

        9926 shares
        Share 3970 Tweet 2481
      • Top 10 Low market cap altcoins to invest in 2021

        7263 shares
        Share 2904 Tweet 1815
      • Top 10 NFT Crypto Projects You Should Know

        7249 shares
        Share 2620 Tweet 1638
      • List of leading partners of Ripple, and How they use XRP?

        6100 shares
        Share 2440 Tweet 1525
      ItsBlockchain

      We are India’s first and oldest Blockchain & Cryptocurrency publication platform started in 2016. We are a one-stop destination for technical analysis, cryptocurrency recommendations, and Blockchain technology resources.

      Buying Guides

      • Buy Bitcoins in India
      • Buy Bitcoins in China
      • Buy bitcoins in Russia
      • Buy Bitcoins in Japan
      • Buy Bitcoins in Turkey

      Important Links

      • Home
      • About US
      • Privacy Policy
      • Promote Your ICO
      • Submit post

      Follow Us

      Contact us

      support@itsblockchain.com

      © 2020 itsblockchain.com - Designed and maintained by Fanatic Coders

      No Result
      View All Result
      • Bitcoin
      • Crypto Gems
      • NFT
      • DEFI
      • Crypto Lists
      • Altcoin
      • Crypto Market
      • Guide
      • IBC Capital

      © 2020 itsblockchain.com - Designed and maintained by Fanatic Coders

      Login to your account below

      Forgotten Password?

      Fill the forms bellow to register

      All fields are required. Log In

      Retrieve your password

      Please enter your username or email address to reset your password.

      Log In
      This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.