Bitcoin’s Moonbound Potential Predicted to Shoot Through the Roof as a Result of the Currency War
In a recent TrustNodes report, it was argued that the current currency war taking place between America and different parts of the world can potentially help Bitcoin’s [BTC] value increase.
The main argument made was that this war could lead to a devaluation of all currencies, leaving consumers to retort to cryptocurrencies.
The news outlet stated different sentiments expressed by different leaders of the world. For instance, Vladimir Putin supposedly spoke regarding “trade, currency and tech wars.” More specifically, stating that:
“The existing model of international economic relations is in crisis today,” eventually hinting this could go as far as “real war”.
As for a representative from America, Elizabeth Warren was quoted saying:
“Today, I’m announcing that, as President, I would pursue an agenda of economic patriotism, using new and existing tools to defend and create quality American jobs and promote American industry,” she further added that policies would be in place to manage the USD to, “promote exports and domestic manufacturing.”
Warren argued that the aforementioned would benefit from currency devaluation, which is something BTC could benefit from as well. The effects of devaluation would lead to increased inflation rates with imports becoming more expensive – outweighing the potential of the USD.
With all this being said, it seems like Donald Trump wants to cut NASA’s budgets, as his Twitter account recently revealed the following tweet:
“For all the money we are spending, NASA should NOT be talking about going to the Moon – We did that 50 years ago. They should be focused on the much bigger things we are doing, including Mars (of which the Moon is a part), Defence and Science!” The last bit of the tweet is clearly sarcasm.
When it comes to the relationship between Mexico and America, Donald Trump’s tweet revealed that the former has agreed to buy agricultural products from farmers belonging to the latter. TrustNodes sees this as America succeeding in “bullying” Mexico – with their currency, the Mexican Peso, seeing a drop-in value.
Of all the currencies, it seems like Europe has had it rough reports the news outlet. They’ve seen a drop for some time now, but it seems like the euro has picked up. The European Central Bank was referenced as well:
“Several members of the Governing Council raised the possibility of rate cuts, others the possibility of restarting the APP or the extension of forward guidance.”
TrustNodes further argued that some believe Putin as being one of the reasons for euro’s devaluation, but believes it makes no apparent sense considering the positive correlation between Russia and Europe.
If all these countries and others end up with devalued currencies and increased inflations, this would mean that consumers may consider the likes of cryptocurrencies. This is already a thing in Venezuelans’ case, as the residents are turning to BTC in place of the Venezuelan bolivar merely due to the inability to afford basic needs.
Bitcoin’s price is $47,139.64 BTC/USD exchange rate today. The real-time BTC market cap of $878.93 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $18.14 Billion and live coin value change of BTC -4.08 in the last 24 hours.