Two of the biggest economic powerhouses in the world, the US and China have been increasingly escalating a trade war between them. This is set to intensify after Trump administration announced another round of tariffs on Chinese products on 7th August.
The United States will begin imposing 25% tariffs on $16 billion of Chinese imports starting from 23 August. With Beijing expected to fight back by targeting $16 billion worth of US goods with equal tariffs, the US-China trade relationship could get even messier.
Famous internet personality, Kim Dotcom weighed in on this escalating economic warfare with some harsh words for Trump’s administration.
Trump was handed an Empire on life support. No trade deal, no economic growth, no tariff or war can save this patient. Top economists around the world agree that US debt is unsustainable. There is no sugar coating this. US Empire is broke. Prepare for collapse. Gold and Bitcoin.
— Kim Dotcom (@KimDotcom) August 9, 2018
Kim Dotcom mentions in his tweet that people have to “Prepare for collapse” with “Gold and Bitcoin.” The internet activist is not just mentioning random commodities to invest in.
Real Opportunity for Bitcoin to Shine Amidst a Global Crisis?
With the looming trade war, uncertainty is now a factor in many business channels, and cash flow and profit for some are suddenly no longer assured either. At this moment, bitcoin could be a logical solution to many situations where financial blanket bans are taking place.
If you look at fiat currencies perform during the time of economic war, it most likely goes down drastically. Noticing this, Brian Kelly of CNBC predicts a substantial spike in bitcoin investment as the trade wars escalate, primarily due to bitcoin’s inflation resistance. Bitcoin is intrinsically inflation-resistant because only 21 million coins can ever be minted.
Earlier, the news team at BitcoinExchangeGuide reported that Bitcoin’s qualities and characteristics are favorable in global trade war scenarios.
What do you think of Kim Dotcom's assessment of the world and the possible pending trade war scenario unfolding? There is no doubt that Bitcoin could be a huge beneficiary of a global standoff between governments and power structures that be. It does beg to ask the question what would it take for Bitcoin to ultimately replace fiat? For more reading along the same lines as Kim Dotcom's most recent twitter tirade, check out:
How Blockchain and Cryptocurrency Can Create a New Financial Reality
