Bitcoin Forum

Is the escalating trade war between China and the USA advantageous to the cryptocurrency sector?

"Data from global multi-asset investment platform eToro shows retail investors are opening more gold and bitcoin positions on news announcements of an escalating US/China trade war. Investors typically pile into gold as a natural hedge against macro economic unrest and data shows a correlation between the number of gold and bitcoin positions on its platform. This could suggest more retail investors are starting to view bitcoin as a store of value." - The London Economic

Whenever something is happening that can affect people and countries either in the economy or politics, there is a strong probability that demand for Bitcoin can go north. This had been shown in countries like Venezuela and other countries which encountered upheavals or even chaos. Bitcoin is slowly becoming the preferred store of value and safe haven. The ongoing trade war is causing a lot of distress which directly pushes some people to buy Bitcoin. However, we should also know that trade war can be causing many problems to affect the global economy. How this possible global slowdown can affect Bitcoin directly and indirectly remains to be seen.

it is indirectly because of the fact that CNY is losing value against USD. over the past 4 months it has tanked about 10% most of which happened in August. and whenever something like that happens in a country people start investing their money to "keep its value".
obviously bitcoin has always been an additional option although the smallest one for investors, so they start investing their money in bitcoin too. but since it is a smaller scale the price doesn't show it yet.

Investors always buy Gold as safe haven. They do this for escape way when the global economic and political condition are in full of uncertainty. We can pretend that the increasing market cap of gold and bitcoin will be continue when the us-china trade not end yet. In this condition we have to be more carefull in investing.  Stock market is not a good place to invest for now, even nasdaq composite fell to 3.41%.

well there is no proof!
what you quoted is just some business trying to advertise its services by saying they are handling a lot of money from their numerous investors!!!

the fact is seen on the charts.
altcoins are getting dumped hard and that means there isn't any investor going near them anymore.
bitcoin is also staying the same price for the past 2 months which means only those who were around are accumulating while others are staying scared and watch for the rise before they start.

in my opinion no one can benefit, because the trade war that emerged from the handling of US and Chinese relations by the US President, Donald Trump, once again has an investment class that views cryptocurrency as a potential vehicle for economic survival. The Bullish shift to Bitcoin is undoubtedly related to the market cycle of the severe Bearish period which is coming to an end, but the geopolitical implications of the global economy have changed over the past eighteen months.

The US has already lost this war, at least so long as trump is President.

The trade war IMO might be one such acceptable reason for the rise in bitcoin prices. But on the whole, the trade war has fueled the investors to transfer their investment to Gold primarily and the buying spree which is being followed by the Central Banks rise the demand for gold even higher.

Another primary reason for the rise in prices could be due to the Libra announcement which came from Facebook, positive news on the launch of BAKKT and along with that the announcement of a new Chinese Government backed Digital Currency. This currently pushed the investors to sell off their shitcoins and reinvest their money in BTC which certainly paved the way for the sudden price hike and the dominance. Newbie investors who have been in the crypto space for more than a year started realizing the true potential of BTC and made them to crash the Alt market altogether.

The trade war hasn't making people move towards bitcoin or other cryptocurrency. Maybe a small percentage of people have cryptocurrency in their choice. Each and every country is facing a hard time with their economy.

In our country automobile manufacturing units have shut down which will cause more unemployment. This is termed to be more severe than the past 2008. Right now banks have come with negative interest rates and other side the gold value keeps on rising. This has made more investors move towards gold than cryptocurrencies.

Its not that simple actually.this is war and investors want a clear path for less risk.i agree that some people dont trust to fiat money because of usd v china war but bitcoin is not the only option.bitcoin need to prove itself as trustful first.

i don't think any of these reasons had anything to do with bitcoin price rise. bitcoin price is rising regardless of these irrelevant news specifically the Chinese thing with their centralized government-coin that is damaging to the whole scene.
cases like US China war only have a small impact on the price as we can see in the insignificant rises that bitcoin has in the past 2 months that this war is heating up.

Bitcoin is a non-correlated asset, and as such, it is an important addition to any investment portfolio in these times of economic uncertainty. I believe that this single factor will be the most important engine to drive future price movements.

If one has to play hardball to get truly free bilateral trade, everyone will win eventually because freedom and its corollary free trade, benefit the world.  One can bend over for only so long before it is time to put an end to it.

Opening more bitcoin positions on platforms like eToro doesn't mean that the retail investors suddenly started buying lots of BTC.Contracts for a difference (CFD) are just a derivative financial product and they don't affect the bitcoin price,by increasing the demand for bitcoins.
The US-China trade war won't last forever.It will end after the end of Trump's presidency.

I don't think so that trade war takes people towards bitcoin or other cryptocurrency. According to me........
Gold is a world class products and its market is very large, and this is due to its stable rate and good return.
Similarly Bitcoin is also a world class product who gave high return in very short spam of time and made many millionaires. But due to lack of proper knowledge of Bitcoin or cryptocurrencies very small percentage of people, going to towards bitcoin.
That's why people buy or moving towards these two products for there stability, popularity and world acceptance.

No! E-toro doesn't deal with physical bitcoins. Rather it is more like an exchange traded fund but without physical settlement of goods. So no matter how many people trade bitcoins in e-toro, it won't have any impact on bitcoin neither new money will flow into the crypto market. So it is not related to US Chaina trade war. But yes, it is true for gold to some extent!

Is it so damn hard to link to the article?
https://www.thelondoneconomic.com/prices-markets/retail-investors-increase-gold-bitcoin-positions-as-us-china-trade-war-escalates/29/08/

Here is the so-called data from which the author draw his conclusion

https://i.imgur.com/zd6mPhr.png

Probably I need some glasses anyhow but I really can't see in that graph the change that would trigger such claims.


Unfortunately, it is doing so slowly it makes you think nothing really happened. Those few hundred dollars ups and downs are nothing compared to the scale of global finances from which you can draw only one conclusion, people that really buy BTC and not some CFD are still a minority, a very small one.


It's all about what graph you read and what time period you choose.
You look at the last two month, nothing happened so there is no effect, you look at the last six months and you see huge growth and there you have it, you can claim there is an effect.
And since the us-china trade drama has been going for more than this you can blame anything on it, even if it's not really related.

But people always feel the need to explain why things happen and uncover somebody to blame for it.

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Yesterday I encounter a post that there is a transfer of 1000 btc to external wallet. In my opinion it is related to the US-CHina trade war wherein USA is at the disadvantage. I guess with the threat of US Economic breakdown big players in the market will start to enter cryptocurrency especially bitcoin. Such as the mentioned 1000 dollars which I believed caused by the fear of US economic breakdown. Though I have no evidence but somehow I feel that there is a connection.

in my opinion the current trade war in China and the US has no relationship with cryptocurrency users or with bitcoin investors and there is no benefit to cryptocurrency, because the current war between China and the US will have an impact on fiat currencies such as the weakening US dollar exchange rate with other countries' currencies and can also cause the volume and price of goods traded globally to remain at a low level.

Then try to dig deeply, how does value of a certain cryptocurrency could be shaped in the cryptospace? For some reasons, a big news or event might shape it. In terms of what happened to US-CHINA trade war is that, they are trying their best to be one of the best country that will lead the cryptospace. In this case, market adoption would takes place for remote cities, and even other countries could be influenced, as a result, bitcoins demand will increase, so as its market value.

There were theories however that allegedly its the US that is behind all the protest in Hongkong. I know is not something to subscribe when its just rumors but knowing all the things happening I will actually think of its possibility, the idea isn't even from me and I have read people's comment about it. Since it always happen that when US interfere countries' internal affairs its going to end messy the only difference with China is that they can't just go interfere there.

Hongkong people are somehow buying BTC though its not really that huge as what is being told in the news site. It can be considered an amount. But as for now the US-China trade war isn't affecting but if it resulted to actual war, people will panic to buy BTC, not only the Chinese but probably all.

I dont know man, but i think US China trade war really affects bitcoin or make it attractive to investors. The reason is that wr don't have any proof or evidence to validate that kind of claim. I think it is only true on gold people on that kind of situation might run into gold rather than to bitcoin, considering not all people knows about bitcoin.

I think any sort of drama between countries, especially 2 big ones is good news for Bitcoin, due to the aspects of it which directly contest centralised currencies.

There are theories, with decent proof that says that the US is behind the China VS Hong Kong war, but it is dodgy and we'll likely never know the truth.

Looking at the price trends, we know this doesn't affect price that much at all - BTC has been fairly stable these past days and I wouldn't say the trade war has an affect on price.