In the Impending Recession, Can Bitcoin Be A World Currency?
The economic relations between America and China has become unpleasant since the announcement by The US President Donald Trump, about increasing tariffs on Chinese goods. According to Trump’s announcement, tariffs will go from 10 percent to 25 percent. China does not agree with this, and the clash between these two Nations can ignite a global recession.
An interesting fact is, global recession or any geopolitical event may affect the currencies of different Nations, but digital currencies and crypto currencies will be unaffected from them. So, as the major cryptocurrency, Bitcoin may be the answer to the problem regarding the global recession. Not only that, but it may also get more people interested in cryptocurrencies. As a result, Bitcoin may bring a revolution to the price and the general use of cryptocurrencies.
The economic state of the world
Right now, the most powerful global currency is the Dollar. Its value is tied to several areas beyond its borders. However, even if it is extremely powerful right now, it can easily change any day. If the tension between America and China continues and becomes bigger, then there is a possibility that the importance of the Dollar will start declining. If that happens, then Bitcoin stands a chance to take the Dollar’s position as it is a great alternative currency at present. Investing in Bitcoin has already increased in China, and it is only a matter of time before the rest of the world follows.
Bitcoin – the alternative currency
Chetan Ahya of Morgan Stanley has warned that the trade war between America and China may result in a global recession, that refers to a period of a global economic slowdown. Using digital currencies like Bitcoin is a lot more beneficial in such a geopolitical crisis because Bitcoin is separate from the general economy and value of this cryptocurrency has high chances to move in the opposite way. People can take the chance to survive the economic crisis by trading Bitcoin. Moreover, being a borderless currency, it can be easily traded internationally. Bitcoin has been considered as a threat to the Dollar previously. However, when the Dollar is under pressure, the world has no choice but to turn towards Bitcoin.
The world is now looking forward to the result of the economic war of America with China. If the global recession is really around the corner, a Bitcoin Revolution is highly anticipated.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.