Bitcoin Forum

https://www.businesslive.co.za/bd/world/africa/2020-01-15-zimbabwe-and-china-sign-currency-swap-deal/

We all know struggling countries with hyper inflation eventually force people to turn to Bitcoin as a store of value to hedge against the drop in the value of their own local currencies.

This has happened in countries like Venezuela / Greece / Cyprus and Zimbabwe and we saw an increase in demand for bitcoins in those countries during these times.

Lately, China has pounced onto opportunities like this to sign agreements for currency swaps to "help"  ::) these countries. Do you think this might have a huge impact on the decline for the demand for bitcoins and also a drop in the price?

Let's discuss. 

Honestly, I have quite a hard time inserting Bitcoin into the picture. Deals such as these involve two governments and Bitcoin will not be an option for sure.

What I know is that this is not "help" as it may be projected by China and their partner countries in Africa. This is nothing but a modern way of colonization. Extending "help" through a loan to an impoverished country, poor enough that it does not even qualify for a loan somewhere else, may look cool. But the truth is that this is a great way for China to hold these countries by the neck. These countries are now effectively held hostage by China. China is trying to gain foothold in the world with this manner.

These poor African countries are now falling into what Dr. Mahathir of Malaysia calls the "Chinese debt trap."

Greece hasn't experience hyperinflation in the last century and more important just two years ago it was going through deflation.

https://i.imgur.com/tUkg3sR.png

Cyprus has not seen inflation over 6% in the last 25 years:
https://i.imgur.com/VioIWtO.png
Again, ironically the country is experiencing deflation



Zero!
Currency swaps between countries can't affect the price of bitcoin in any way it's deal between the countries and a disparate effort from china to get paid something that is actually worth something.

Besides, it's not only China doing that, Japan is also doing the same:
https://www.reuters.com/article/us-japan-india-modi-currency/india-japan-sign-75-billion-currency-swap-agreement-idUSKCN1N31BS
And here we have one netween Jpaan and China:
https://www.reuters.com/article/us-china-japan-agreements-swap/china-japan-sign-three-year-fx-swap-deal-to-strengthen-financial-stability-business-activity-idUSKCN1N00GD

These things are at goverment levels, for the average Joe it means close to zero

How did you forget Gold here? Gold is the most widely accepted hedge instrument worldwide right at this moment and if you look at the chart of Gold price for last two years, the fact will become as clear as daylight!


I wasn't aware that China offered such kind of help to these countries badly affected by Hyperinflation! I am sure, they are trying very hard to become the next superpower of the world. But I fail to understand its impact on bitcoin, seriously! Bitcoin is no way tied to such national currencies in a way that will effect the price of it! Gold can receive some impact because countries still rely on gold as a reserve asset, but certainly not bitcoin!