Trade Conflict between U.S. and China: An Examination of Bitcoin's Role in the Trade Disputes
In the bustling world of global trade and finance, the U.S.-China trade war looms large with experts like Zoltan Pozsar, CEO of Ex Uno Plures, underlining the tense standoff between these economic titans. Both nations slap tariffs on each other as they scrabble for supremacy in the global trade game.
China, according to Pozsar, is in a precarious position akin to the U.S. during the Great Depression, with its economic lifeline hanging by a thread – its debt servicing heavily dependent on revenue generated from exports. Trump's tariffs, Pozsar argues, gouge China where it hurts most – restricting its exports.
Consumers will simply buy fewer goods to save money when faced with rising prices, Pozsar suggests, creating a vicious cycle that squeezes China. Managing this economic strain isn't straightforward, however, as China's options for coping, such as stimulating domestic consumption, clash with the Communist Party's ideological framework.
Pozsar notes that both nations have been shuffling their strategies. While the U.S. seems to be adopting a more China-esque approach, favoring stimulus for industrial projects, China is cautiously drifting towards a Western model of direct-to-consumer monetary easing.
Meanwhile, Nansen paints a grim outlook for risk assets and crypto, suggesting that the U.S.-China tug-of-war will intensify, making the case for Bitcoin all the more compelling.
Dan Morehead, founder and managing partner at Pantera Capital, opines that the U.S. should hoard more Bitcoin, emulating its historical gold hoarding precedent. Morehead predicts that this will trigger a "strategic Bitcoin gap," as other nations race to establish their own Bitcoin reserves to counter the U.S.-led financial monopoly.
Even China, with its anti-crypto stance and estimated $18 trillion in seized Bitcoin, might find it tempting to join the Bitcoin bandwagon if it meant taming the U.S. economically.
Rumors swirl that China and Russia have already been covertly using Bitcoin to settle certain energy trade transactions, shunning the U.S. dollar-dominated financial system. This move, if widespread, could mark a significant power shift towards a more decentralized, less dollar-dependent global economy.
- Despite the China-U.S. trade war, experts like Zoltan Pozsar advocate for China to adopt a Western model of monetary easing, directly to consumers, to cope with the strain.
- Nansen foresees a grim outlook for risk assets and crypto, but suggests that the intensifying U.S.-China trade war may make Bitcoin more appealing.
- Dan Morehead proposes that the U.S. should emulate its historical gold hoarding, instead hoarding Bitcoin, potentially creating a "strategic Bitcoin gap" as other nations follow suit.
- China, known for its anti-crypto stance, has an estimated $18 trillion in seized Bitcoin, leading to speculation that they may consider joining the Bitcoin bandwagon to gain economic leverage over the U.S.
- Rumors suggest that China and Russia have been using Bitcoin to settle certain energy trade transactions, moving away from the U.S. dollar-dominated financial system, which could lead to a more decentralized global economy.
- Amidst global trade tensions, ICOs, tokens, dex, and other crypto platforms may find testing times as the general-news environment becomes increasingly precarious due to politics.
