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Bitcoin Increases Due to Trade War? Not According to Sceptics!

4 min reading
Bitcoin Increases Due to Trade War? According to skeptics: NO!

While Goldman Sachs is looking for a link between a trade war and an increase in the Bitcoin's price, sceptics say that this theory is wrong. In their opinion media manipulate exchange rates!

Economists at Goldman Sachs (one of the largest investment banks in the world) say that the trade war between the US and China will not end so quickly. Some even say that it will probably last until 2020. Interestingly, they noted that the entire situation has a positive effect on Bitcoin (BTC). In this situation, its position is significantly strengthening due to the hard monetary policy of this asset.

Are we approaching a recession?

According to a report published by Reuters, Goldman Sachs believes that there is no chance that the trade war between China and the US would end before the presidential election. In addition, economists of the banking giant announced that they believe in a recession. Goldman Sachs is convinced that on September 1, a 10% tariff for the last $300 billion of Chinese imports will come into force. After hearing this news, the Chinese government reacted quite aggressively, threatening to stop buying American agricultural products. It is worth noting that this war has been going on for over a year. It is strictly focused on issues related to intellectual property, tariffs, cybersecurity and technology.

Bitcoin as a last resort?

It is intriguing that, as part of the ongoing trade war, the US has accused China of manipulating its own currency to reduce the profitability of US exports. Of course, the Chinese government refutes this attack by denying all arguments. However, it is worth taking into account the fact that the yuan is quite depreciating in comparison to the dollar. Interestingly, some cryptocurrency enthusiasts have begun to look for a link between the recent Bitcoin value increases and the situation, claiming that the ones responsible for everything are members of the Chinese public who through the Bitcoin try to protect themselves from yuan's dropping value. What if this theory is correct? In this situation, Bitcoin can greatly benefit from the ongoing dispute and the likely arrival of a recession. According to Goldman Sachs, the inflow of capital from the yuan to BTC may continue.

Controversial Voices

However, not everyone supports the thesis presented above. Sceptics say that Chinese investors are not driving the cryptocurrency market at all, they are looking for completely different plots. For example, Peter Schiff, American economist and CEO of Euro Pacific Capital, wrote on Twitter about his suspicions claiming that these suggestions were fabricated by CNBC in order to control the Bitcoin course; According to Schiff, CNBC devotes more attention to Bitcoin than the gold market, which he thinks is much larger. He also claims that Chinese citizens are not buying BTC as a safety measure; Schiff believes that this theory has contributed to the fact that speculators began to acquire Bitcoin, naively thinking that the Chinese are buying it for their own safety as an alternative.
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