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The ongoing trade war between China and the United States could be the boost that Bitcoin requires to reach its all-time high.
China and the US are two of the most powerful economies globally. Both are highly productive countries with a vibrant manufacturing sector with economies worth trillions in US dollars. Currently, these two economies are locked in a trade war where lesser economies are suffering more than the warring parties.
Both the US and China imposed tariffs on goods worth billions of dollars. The ripple effects of these tariffs were felt far and wide. The global financial market was forced to adapt quickly as a result of these warring parties.
Huawei is arguably the most famous loser of the trade war. Some of its contracts with US, and European companies were cancelled as a result of the trade war. This forced them to revise their expected growth in a year where Huawei could have easily surpassed Samsung as the leading smartphone brand in the world.
Amidst the economic turmoil, the hope of Bitcoin as a safeguard against such drastic measures strengthened. Bitcoin had been touted before as a store of wealth; the events of the seemed to support this claim.
Insights Network sought to determine what the market thought about the trade war and its effect on Bitcoin. This article discusses the results obtained from the survey.
The survey involved 6,890 KYC verified participants from the Insights Network platform, providing 10,476 unique responses. Here are some of the key demographics from the survey:
- Total number of participants: 6,890
- Total number of questions asked: 6
- Total number of unique answers: 10,476
- Total number of countries participated: 154
Questions Surveyed
The questions asked were based on the objective of the survey, which was to determine the expected outcome of the trade war by the global blockchain community on Bitcoin.
Key Insights — Trade Wars Uncertainty
President Donald Trump had mentioned the time, and again of disgust, he has continually had over China’s trading practices. Many did not expect the complaints to be succeeded by tariffs. However, President Trump proceeding to impose the first tariff on goods worth billions of dollars from China.
From the results, there’s an air of uncertainty surrounding the ongoing trade war. No one is certain of the next move either party is going to take. This uncertainty is the cause of fear in the global markets, causing unexpected price movements in various commodities.
The uncertainty is also being felt by fiat currencies globally. Economies are being weighed down, and this may increase if the trade war is to continue.
What remains negatively unaffected by the trade war is Bitcoin. In fact, as a result of the trade war, Bitcoin adjusted upwards while major stocks were falling. This was an early sign of a population that believed, even more, the promise of cryptocurrencies.
With the trade war likely to cross over to 2020, Bitcoin may find more believers.
Key Insights — Trade Wars Are Considered Positive for Bitcoin
Seemingly, the trade war is opening the eyes of the world to its significant advantages over fiat currency. From the results, the participants majorly see Bitcoin as a safe-haven asset during trade wars.
Bitcoin’s status as a safe-haven asset has been put to the test multiple times in 2019. During the conflict in Venezuela, Bitcoin trading increased as it offered more economical safety compared to the country’s currency or even the dollar. A similar trend was experienced in Hong Kong as well during their protest.
With Trump’s reputation, the trade war is unlikely to end as soon as the global markets would want. This may pose a problem for the markets, but it may be the long-awaited gift for Bitcoin. With the ongoing trade war, Bitcoin has the chance to prove that it is the haven of promise.
If Bitcoin maintains its value during this time or, better yet, rises significantly, it will have confirmed to the world that cryptocurrency is the future.
However, this also raises the question of whether Bitcoin is only a commodity for the challenging economic times or all economic times.
Key Insights — Continuation of Trade Wars Could See New Bitcoin All-Time Highs
The participants are divided on the outcome of the trade war.
For a new all-time high to be achieved, it may take more than a trade war that can be easily solved through sober diplomacy.
Though Bitcoin has remained somewhat steady during this period, it has also shown its weakness in other aspects. The $2,000 sudden fall that was experienced in less than 24 hours scared many people even within the cryptocurrency community.
Bitcoin must first prove that it is a stable commodity. Losses of more than $1,000 in a day may discredit the cryptocurrency as a haven.
A new all-time high will likely not be achieved as a result of the trade war in the short term. Bitcoin will need to do more within the cryptocurrency exchange industry to win further approval in the mainstream market.
Holding out on its own and preventing huge losses, even on bad trading days, would be a positive step for the cryptocurrency.
It can be argued that the current delay in achieving a new all-time is as a result of Bitcoin’s own doing. If Bitcoin performed as it should in the decentralized market, maybe the effects of centralized markets would be seen.
Conclusion of Survey Results
Bitcoin may not achieve a new all-time high in the short term.
The ongoing trade war is the perfect opportunity for Bitcoin to prove itself. However, it may be let down by the decentralized markets.
However, if the trade war is to worsen, continuing far into the future, then Bitcoin has a chance of surpassing its 2017 high.
We’re excited to share more research results, and upcoming product releases with our community as well as a growing audience of early cryptocurrency adopters across the globe. Thanks for reading and your constant support of our journey!
Onwards and more insights,
Team INSTAR
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