How Bitcoin Can Benefit From the Growing US-China Trade War Tariffs

US-China Trade War Could Usher In Bitcoin Spike

President Donald Trump has once again doubled down on a massive trade war with China. The world leader has led 2018 with a strong conviction that his platform of being tough on china and bringing manufacturing jobs back to the United States is essential to his re-election strategy. Political analysts predict that the trade war is unlikely to be just a passing fad, either. With the Republicans rallying behind the large trade squabble with China, it is likely that Americans will continue to see the effects of the conflict for quite some time.

But this past month, the decision to raise tariffs on each country to a mind-numbing 25% may be just the thing required to turn the trade squabble into a legitimate trade war. As a result of the massive problem, currencies all over the world are taking hits in their prices, and faith in the American import/export economy falls with each day that the conflict continues. China imports over USD $16 billion of their products to the United States that will now be hit with the 25% tariffs, and it is reported that another USD $200 billion will be affected by similar tariffs later in September.

This has created a set of economic conditions that continue to be problematic for both the US and the Chinese economies. Both economies seem to rely heavily on the profit of the import and export businesses, which are now being directly targeted as a result of the trade war, which increases in intensity daily. Though it is unclear which direction the President will go when push comes to shove and the trade war escalates, his rhetoric leans towards escalation, rather than de-escalation of conflict with the former-communist country.

World Currencies Fall In Price

The Pound has fallen to its lowest point against the European Euro, a price crash largely attributable to the controversial choice of the United Kingdom to exit the European Union. The Pound continues to fall in value as a result of growing concerns following the decision.

The Euro is also being hit hard, largely as a result of disagreements in monetary policy between the European Central Bank and the United States Federal Reserve. While the two banks continue to disagree on key issues facing the economic world, the outlook remains largely bearish for the pairing of the United States Dollar and the Euro (USD/EUR).

Advantage For Bitcoin

Any investor who has been in the market for a significant amount of time knows that nothing is guaranteed, especially when it comes to how the market might react to any given bit of news within the fiat world. But if historical trends have anything to say about it, the crash in price of major fiat currencies could have a positive effect on both the market volume and the price of Bitcoin.

As investors face tough conditions in the traditional economy, many turn to cryptocurrencies as a possible way to avoid investing in the bearish systems of the fiat world. It is possible that the financial conditions created by global economic conflict could be perfect for spurring on a new cryptocurrency rally, particularly in the Bitcoin market.

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Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

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