The trade war between the United States and China is reaching new highs recently as the Chinese yuan keeps falling in value. Because of this, some signs that Chinese investors are starting to buy Bitcoin are starting to appear these days.
Before now, the Chinese government constantly tried to keep the value of the yuan afloat. It should be worth above 7 CNY to 1 USD, but now the government has decided not to protect the currency in order to hurt the U. S. This made the yuan reach its lowest level in around 10 years.
This was an escalation of the trade war, which got heated after the U. S. President Donald Trump threatened to impose 10% tariffs on all Chinese products.
Another sign that Chinese investors are buying a lot of Bitcoin is that exchanges that cater to the Chinese market such as Huobi are trading with a premium right now because there are a lot of people who want these assets at the moment.
According to Garrick Hileman, the research director at Blockchain, the trade war has caused tension in China and the devaluation of the national currency has affected the population, which is looking for more stable assets right now. Some see Bitcoin as a safe haven asset, so they are investing in it.
In related news, China is reported to be creating its own digital currency (which will probably be centralized). The People’s Bank of China has affirmed that its own token will have several features that others do not have.