Bitcoin Forum

Will it be beneficial or harmful to electronic money transactions when the trade war between China and the United States occurs, the event has nothing to do with the crypto market?

Today the forex market is turning big on the retaliatory passages of Mr. Xi and Mr. Do Nam Trung during the first waves of trade war between the United States and China. Actually, this trade war has been predicted for a long time, until now have the first strike. The upcoming Forex Trader may be able to surf the net, but what about the Crypto Trader? What are the benefits or disadvantages of this trade war?

Situation of US trade war in China
The Chinese lost this year also lost points in the international arena because of currency devaluation trades to gain a trade surplus, mostly from the United States. If you do not know yet, the trade surplus is that when a country exports more than it imports, the difference between exports and imports surpasses the surplus. This new China is a way to devalue currencies so that the goods from the photos are cheaper than other countries, boosting the demand for image water, and thus exporting more. Totally, China is the largest import market for other countries, especially the United States. From here the US began to beat him.

In 2017, the US trade deficit with China is $ 375 billion; That means that US exports to China are only $ 130 billion while imports from China are $ 506 billion.

Yesterday morning, Trump started imposing taxes to $ 200 billion worth of Chinese goods, China seems quite surprised with this counter-attack:

China has no choice but to respond to the latest US tax policy. In the news, the citation shows that China has just released a new notice of proposed tariffs for US goods. This has added to the uncertainty of negotiations between the two countries

Hope America realizes the negative consequences of their actions

China has not made a detailed proposal for possible response policies for the United States in its announcement.

Then the news from Livesquawk and CNBC said last night that China has imposed a 5% tax on US goods that previously imposed a 10% tax. The amount of goods subject to tax is $ 60 billion. The deadline is September 24, the day the United States will impose a 10% tax to $ 200 billion US goods just announced yesterday. Eat pieces

What is the commercial battle with Bitcoin and crypto?
It's always related to you.

You can see that the tariffs imposed between the US and China can cause both the yuan and the dollar to depreciate, even though the yuan is likely to depreciate higher. We will talk more about China as this is a very hot coin market (currently China has banned all domestic crypto trading floors, but can still access outside decks), bull run run 2017 also contributed much from the "coin investors" China.

These tariffs are likely to result in the loss of Chinese yuan, forcing the RMB holders to look for alternative assets to allocate their funds. We can see that experts are predicting commercial war will have a negative impact on China's stock price, which has been very poor since the beginning of this year.

In addition, trade war is contributing to the growing uncertainty in the Chinese economy. With cash flow likely to move out of the Chinese yuan and also out of Chinese stocks, the next best place for investors and holders of local currency to allocate their money is most likely to be Electronic money, typically Bitcoin.

The concentration of mines in China
Obviously, the devaluation of the yuan is not significant enough. Another factor is the concentration of mines in China.

Currently, about 81% of Bitcoin operations are located in China. Antpool and BTC.com (two bunkers owned by Bitmain China) account for 32% of Bitcoin worldwide. This concentration of Bitcoin exploitation means that the majority of Bitcoin traded worldwide is exploited in China. This continues to increase the impact of Bitcoin supply and demand from Chinese investors and RMB owners.

The shift from the US-China trade war that has intensified, the depreciation of the high-priced yuan, together with the bitcoin exploitation in the world dominated by China will make Bitcoin more and more valuable. in this country. What next can you guess?

Of course, these are just predictions, the market will have many changes that we did not expect, but the impact from trade war on Bitcoin and crypto is yes, and of course we can not ignore. .

IMO this is completely unrelated to bitcoin.
All of this trade war shit (which is more of a banter than a war) doesn't have any real influence on either the world economy or cryptos at all.

This is just a silly game between the US and China. Two 'alphas' who want to dominate each other. And none of them is winning.

This shouldn't have any influence on any electronic money transactions (crypto, wire, paypal, ...) at all.
I can't imagine, at least.

It will have an effect if the large mining pools got affected(which is very likely to happen) because of the trade war between the US and China. The depreciation of US dollar will also somehow have an effect to the price of crypto markets since it is the most compared fiat currency to bitcoin and cryptos after all.
For now, I guess we can ignore it because the effects it will have will not be that significant unless China won the trade war.

The latest drop in bitcoin does not look stable either. On the other hand, volatility as well as the problem of bitcoin is also a chance for investors. Because it’s easier for him to stabilize and grow again. The long-term benefits of cryptocurrencies are high, because the world is moving along the path of digitalization

The trade war has no direct effect in the Bitcoin market its just a crazy game between the two dominant countries showing their influence in the world market market where no one wins with their war. It may have indirect effects but not that much and no need to panic.

The trade war IS affecting the world economy - it's hurting China and all the countries that supply raw materials and parts to them (so Korea, Japan, Australia etc are all experiencing downturns).

However, I agree with you that this doesn't have an impact on bitcoin. What has an impact is that rich Chinese don't trust Xi jingping and are trying to get their money out of China anyway they can. They used to do it via real estate - China allowed you to take $50,000 out of the country every year, so they bought a property in Canada or Australia using a mortgage, and then sent currency out of china each year to pay teh mortgage. After 25 years you have sent quite a bit of money abroad and have also gained an asset that has appreciated in a safe country. But China has cracked down on that, so people are turning to bitcoin.

It could affect the economy, after all it is a trade war between two countries, but I seriously doubt BTC would be affected. BTC IS decentralized, not controlled by neither countries, so even if a trade war DID happen, nothing should happen and BTC should just continue on with its everyday transactions. It could increase the buyers and sellers of BTC though, but that's pretty much about it. The economic flow of BTC through the market should still basically be the same, before, during, and after the trade war.

It is known that virtually everything in china is owned, operated and regulated by china's centralized government. It is not acknowledged often but this precedent applies also to china's crypto and mining sectors which are state funded, state owned and state operated if to a degree via proxy. The concept of china having a true private sector is debatable.

China retains the majority of the crypto mining industry under state control. The US vs china trade war leaves china with decreased economic and financial flexibility. This could imply china relies more heavily upon bitcoin and its domestic crypto industry for economic support and growth, due to its trade conditions being less favorable.

If china's economy was stronger their crackdowns on crypto could be more severe as they were in past years when china's economy was doing better.

Neither Schneider. Trade war would do nothing to Bitcoin either way, its not like if one side falls, BTC would fall. Sure, the economy may be affected but it wouldn't actually bring diverse effects on it.  It's just the usual, supply and demand, BTC rising and falling every now and then, BTC popping off suddenly kind of things. Its like you're asking how two neighbors fighting each other can actually affect their dogs, which doesn't really relate at all to them

What I think can be triggered is a war between stablecoins, by China with its cryptocurrency and the U.S. if at any time it establishes an alliance with Libra or if it launches the digital dollar, as suggested by the EDF.

This is a consequence when Libra was announced that they would not include the local Chinese currency, and as always China has been looking for a way to dominate, it knows that it has to fight with the hegemony of the dollar, in truth this will be very interesting for 2020, because This type of trade war will offer the world a greater adoption of Bitcoin, because it is from China or from any other country that the news is triggered, many when listening to blockchain and cryptocurrencies directly associate it with Bitcoin.

Bitcoin does get affected by the economical changes of the world. Either it will gain value or lose some. When the existing money system will fail in helping people, then bitcoin would be the answer. By decentralized, it means that no one can claim to control or own it. And that is true because if it was possible, then the country with such power would have been the richest and definitely super power.

I don't think that Bitcoin is higly affected by economic changes. If you take into consideration that Bitcoin is decentralized than that makes sense. However, people beleive that Bitcoin is much more under influence of economy and politics that in fact really is and to my opinion US-China trade war doesn't affect Bitcoin significantly in term of price or demand.

People are going to try to find any link between the movements of bitcoin and what is happening around the world but as you say there does not seem to be any kind of correlation between what's happening with bitcoin and the trade war that we are seeing between the United States and China, I really think that the trade war is also being exaggerated since we are not really seeing anything that at least to me could tell us that the Chinese or the United States government will have any serious conflict in the future.

The issue about the united states and china war is just all about the demand for the products. The US notified about the products they import is just more expensive than the products they import. The china alarmed with this kind of transaction, so they raise the taxes for all of the US product because they don't want to lose profit. There is some news that china will adapt the use of the cryptocurrency to make it more efficient in money transaction and more secured.  On my perspective, the war does not affect using cryptocurrency for both countries. Because they are still developing the use of the cryptos on their country. Still, the government does have enough authority to handles the transaction for using the cryptocurrency. The people have the will to trade their coins even without hesitation about the war of the two most tremendous country.

If this trade war will start recession crypto market will be in trouble too

No dude. BTC gets affected by the demand and supply of the market. What gets affected by the trade war between US and China is most likely the economic markets of the two countries as well as the purchasing power of their respective fiat. BTC doesn't gain nor loses value due to war, and again, it gains and loses value DUE to demand and supply. It seems like BTC is clouded because some of the traders are from the US, some from China, BUT not all traders come there. IF you say that it is affected because of such reasoning, then me killing some trader could be said to affecting BTC, which is stupid, like really.

this trade war should affect bitcoin in a positive way
simply because there is no more "safe heavens" for investments and what was considered a solid portfolio ( treasury bonds, gold etc.) is no longer so
inflation eats your fiat money , gold doesn't bring as much profit and stability and with the global powers shifting you never know what is going to happen with the stocks come next year
bitcoin is volatile and unpredictable as well but this trade war makes it attractive more and more
 since it allows you the high risk-high reward scenario while the others only high risk and low reward

Bitcoin could be affected in the sense that people would use bitcoin to get away from the trade war which countries see as a problem so they could ban it, not like it happened, it didn't happened and not only that but countries started to see the benefits of it as well. USA is now taxing people and China is now working on blockchain, the best outcome that we could ever hope for actually happened for bitcoin.

I know this will take a bit of time to show itself because these are huge nations so they do move slowly for these kinds of things and not rush into them but I think we will see a huge increase in adoption of governments coming very soon, in 5 years almost all big nations will probably have a crypto reverse just like they have foreign fiat reserves right now.

In my opinion, the trade war between America and China does not have a significant influence on the price of bitcoin because each one is in a different economic environment. The trade war between America and China has indeed brought the world economy into a downward state and affected other countries. The slowdown in the global economy is felt by many countries around the world especially those who are in direct contact with the US and Chinese manufacturing markets.

A trade war will have a significant impact on the price of bitcoin if both countries adopt bitcoin. In fact, as we know, China is promoting the use of Yuan throughout the world, including the plan to launch a Yuan-based digital currency (Yuan Yuan International). While the United States itself will surely maintain the dominance of the dollar in the global economy. At present, the US dollar is the world's reserve currency. Both China and America do not like the decentralized system of bitcoin.

The impact of the Chinese American trade war did have a negative impact on the global stock market, the sluggish global stock market triggered an increase in the price of bitcoin and gold because investors panicked and shifted their investments to bitcoin and gold. but the increase is not too significant.

Because part of that trade war is the Crypto mining, now the USA wants to directly compete against china in bitcoin mining, and we know china will not stay there with cross arms, so, things will get hot in that aspect. 

The materials to build the miners are part of that war, so, ofcourse it affects bitcoin. But at the end Bitcoin price isn't just based on those factors, so, that will not affect the bitcoin price at all.

Crypto mining does not even have a large stake in that useless trade war. This ongoing trade war is really absurd and unnecessary. Only their proud leaders want this disorder. They do not care how it all affect the lives of billions of people because they are already wealthy enough. Lucky for us because we are in crypto. If this trade war will continue, fiat currencies involved will also suffer due to decreasing trades. If this will happen, daily stuff will become expensive due to limited importation of goods, and depreciation of fiat value will be faster. Crypto is going to grow as a more viable alternative in the process.

China has the highest population in this world, so do you think USA can easily dominate China in terms of bitcoin mining? I don't think so.

Although USA is more advance than China in terms of technology, the percentage of labor is much more higher than USA. China is very competitive in terms of money and economy. They will do anything just to dig more for them to become more powerful above all country.

And I think that the trading war will affect the bitcoin price in such aspects.

US and CHINA trade wars in my opinion will not affect bitcoin, although bitcoin could have benefited or lost from the war between the two countries, I am still asking if a faster payment process such as using bitcoin will help them also export faster and import, speed might also have an effect on bitcoin and the two countries, and even then it seems like the two countries are the most annoying countries for some bitcoin communities

I totally disagree with your views. Many bitcoin mining workshops but not necessarily the owner is Chinese. Many mining factories appear there because in China there is very cheap electricity prices in some places and the government has no laws prohibiting it. Besides, the rent in remote areas is also very cheap and that is why many businesses from abroad come to China to rent land and electricity to exploit bitcoin.

All the assets are ultimately judged by the demand and supply thing but neither the supply of bitcoin is in hands of this coin or the demand and even if their national currencies lose their worth, bitcoin won’t because the currency that will lose won’t be the one showing bitcoin worth. Let’s just have a scenario of deep web. The war of these two countries hardly affects people of that world. Demand wont decrease in deep and dark web for sure. This is just one illustration.

The average investors in the stock market of US will be thinking about the possible back up investment or other options if the trade war takes effect negatively to their economy. It might affect bitcoin in a positive way because people will be pushing their money into bitcoin because they know that bitcoin is cannot be influenced by any economic situation so their value will be well kept in bitcoin.

I also have the same thought as you, the trade war between the US and China will not be related to bitcoin because Bitcoin is not a particularly important area, we can see the interest of the US and Chinese governments, they almost ignore it if I don't want to say they hate it. While talking about the trade war, the important point is the cooperation between the two countries, import and export goods and financial and stock markets, this war will affect people in these areas, bitcoin has no value in this war

Well, I am expecting the bitcoin price to go up as demand increases. Adoption will rise because of this trade war as an effect since people or businessmen will mostly prefer bitcoin when transacting. It is fast and easy, and partly anonymous too without any politics and boundaries.

In any case, the US government will understand that their aggressive policy towards other countries can lead to negative consequences, where other countries will be able to use cryptocurrency for various financial transactions and refuse to use the dollar.  Such actions can greatly affect the credibility of the United States of America and its economic stability.

I don’t think that the trade war between the USA and China will somehow significantly affect the price of bitcoin. States practically do not use bitcoin in trade agreements, and citizens will continue to use cryptocurrency without any problems. Moreover, both the United States and China announced the creation of their national stable coins and will continue to use them. These countries are too far apart in a geographical sense, as well as in the state of their economies. A trading war will affect ordinary stock markets, but not the cryptocurrency market.

Their decision to create their own cryptocurrencies will have more potential effect to the price of Bitcoin than the trade war. If this trade war will reach its worst case though, it might be good for Bitcoin's price. But it looks like this trade war is temporary. Upon stepping down of Trump, the US might also change their stance regarding this war. The policy of the next leader of the US might not be in congruence with the current foreign trade policy of Trump.

I think a trade war between the USA and China could affect the price of Bitcoin. These are 2 countries with the most developed economies in the world. The economies of other countries depend on them. For example, if any country will enters a severe economic crisis as a result of trade sanctions, its citizens may start buying bitcoins to protect their funds from hyperinflation of the national currency.   

There could be better ways and we could both have bitcoin being loved by the governments while the governments are not being at war against each other but that doesn't mean that this is not working out for us.

Bitcoin hasn't been high for too long now but governments will eventually look at it in a way that they could cut the losses in between and go to source directly, that means eventually there would be governments who will use blockchain to their own benefit which would show the world bitcoin which is based on blockchain is a good investment and create some sort of high adoption increase which in return will increase the price.

We just have to wait for it but of course politics change insanely fast so what is good for us right now could be scrapped and rewritten just tomorrow and we wouldn't be shocked.

I don't think this trade war will effect BTC in any way. This is just diplomacy between two countries which happens from time to time. Nothing major takes place in cryptocurrency market due to this. Moreover it's just a matter of few months before this war is over and things run back to normal.

That is one way of looking at the picture. People who hold the opinion that this war can affect bitcoin is due to the fact that bitcoin worth is represented in dollars and if dollar gets hurt, it will hurt bitcoin too. Some think it will rather increase bitcoin’s worth and the number of investors will also increase. In my opinion, all the negative things of fiat affect the digital coin market in a positive way.

That won't affect Bitcoin, they prefer gold.

China is even more hypocritical in my opinion, recently China only wants blockchain technology applied to their government in other words they want to make their own cryptocurrency which is basically centralized. It doesn't really support bitcoin / altcoin itself. They want to take advantage of the moment of hype, so people are aware of their coins to get the profit from it.

Additional information: China is blocking etherscan websites for their countries recently (I don't know now), this proves that they do not want their citizens to use coins other than their own.

China and Russia are making new moves every day. China is already very strong in Bitcoin mining. Russia is after its own projects. The US is the greatest power of the current economic order. Russia wants domestic software to be installed on technological tools. I don't think Bitcoin should be monopolized by any country.

If true then this is good for bitcoin, for a long time China has had a huge advantage over the rest of the world when it comes to mining and even if they do not lose that position of leadership if at least a country can become a real challenger to that position then that will be good for this market, but as you say that is not really going to affect bitcoin and its price that much since the only ones that care about such things are those that buy mining equipment.

Even if China and Russia make an alliance, I seriously doubt whether they will be able to take on the United States. The US remains the largest economy by a long distance. There were a lot of rumors about China overtaking them, but those predictions were never realized. The Russian technology lags behind that of the Americans, while the Chinese are only good in plagiarizing.

It may affect in a negligible margin but the impact will not change much in the market. The war is beneficial for other countries which are trying to outsmart US and China but its really hard to compete. If countries like Saudi or India take cryptocurrency to their market and start using it, even very minute level then we may see a huge boom in the market.

China has a stable absorption of the local economy, this is undeniable.

bitcoin also cannot be monopolized because usage and majority holders do not always only come from two countries. The effects of trade wars are only for each fiat, and have become an important instrument as a supporting component of national business and also competitiveness against composite stock indexes. BTC is still outside the context of battle.

Of course, the trade war between China and the United States greatly affects the resolution of the issue between transfers of funds. Especially on an electronic scale.