Bitcoin currency stability

[Mor254]

To what extent will the economic war (between the US and China) affect its future impact on the bitcoin?
Will these countries resort to bitcoin to maintain their economic strength?  And avoid economic sanctions among them?
Will Bitcoin succeed in maintaining its strength and stability as it is not under central authority?

[Lapatai]

BTC in China is restricted. When war will end, I think that China legalises it and starts to use it on daily basis.
BTC isn't some fiat currency controlled by central bank, it is decentralised. It shouldn't have big impact to Chinese or USA economy.
After economic war, I think that BTC price will soar because many people in China would like to invest a little bit into them.

[dothebeats]

Perhaps a few people would look into bitcoin though I don't think that at this point, people are that confident to trust most of their assets in a relatively unstable currency and use as a hedge on a devaluing fiat. Most people are still believing in the power of their government to turnaround whatever economic crisis are they experiencing right now and I don't think it'll be a different story any time soon. Bitcoin can also be a target of law enforcement should they find out that it is being used to evade economic sanctions, and we all know what would it be like once that happens.

[Duzter]

Bitcoin as a currency doesn't need to be stable. The political war between USA and China isn't gonna impact the stability of the cryptocurrency market as it is a decentralized network. Being stable is part of the cryptocurrency, and this will be completely upon the increasing demand to the adoption happening with time.

[audaciousbeing]

Perhaps a few people would look into bitcoin though I don't think that at this point, people are that confident to trust most of their assets in a relatively unstable currency and use as a hedge on a devaluing fiat. Most people are still believing in the power of their government to turnaround whatever economic crisis are they experiencing right now and I don't think it'll be a different story any time soon. Bitcoin can also be a target of law enforcement should they find out that it is being used to evade economic sanctions, and we all know what would it be like once that happens.

Thanks for your contribution. The trade war going on between China and US does not translate to the increase in the use of bitcoin because that not the way it works. For one, for the fact that US and China are now having issues with themselves means that traders in the international market will start accepting bitcoin as a means of payment neither will the workers in both countries will start demanding their wages to be paid in crypto in addition to governments start asking the dues be paid using crypto. It does not work that way. The significant thing that the trade war would affect is the landing cost of production or sales which would then be borne by either the producer or the final consumers depending on the elasticity of such product and other factors that influence the prices of commodities.

[gantez]

The identity of bitcoin is not necessarily for stability. It is not controlled like fiat and so whether wars are happening between countries or not, the fact that it activities are not regulated, it will fluctuate either way.

[exstasie]

In my opinion:

About economic war affect: Of course, the economic war between these two country will have negative impact for US and China economic, world economic and of course for BTC. China and the United States are among the most economically powerful countries in the world, their economic downturn due to the trade war between them will affect the whole world in one way or another, the economic downturn will affect BTC as well. There is two way, how it can affect BTC: 1. Slowing down and reducing the overall price rise of BTC. 2. China and the US may look for an alternative way to trade using BTC. This would only raise the popularity and price of BTC, as cryptocurrency is limited, but it should not be forgotten that it is risky and unstable.

Good points. I see a lot of bitcoiners predicting option #2 as a likely outcome, but I haven't seen anyone make a compelling case. Most people keep trying to paint BTC as a "safe haven" in the face of shaky USD, CNY/RMB, Chinese and American stock markets. But I think we are still very far from Bitcoin truly being a safe haven asset.

That is to say, I think Bitcoin is rising in spite of investor fears in the broader markets, not because of them. If shit really hits the fan (global financial crisis, deep recession), my opinion is that Bitcoin will suffer dearly.

Because of the economic war itself, I think this is a temporary phenomenon, with the change of the US president, the war itself may decline. For the second term, I think the president will not be re-elected.Because of the damage to the United States itself, the new president will be interested in seeking a solution. So in conclusion: This will not have a lasting impact on BTC.

Same thoughts here. I doubt Trump will be reelected and I think his successor will be looking to reconcile.

[shield132]

To what extent will the economic war (between the US and China) affect its future impact on the bitcoin?
Will these countries resort to bitcoin to maintain their economic strength?  And avoid economic sanctions among them?
Will Bitcoin succeed in maintaining its strength and stability as it is not under central authority?

Imagine there is crisis, what happens in this situation? People have no money, very small amounts, prices are higher, wages are lower, very bad situation. Person needs extra money, he had saved bitcoins in past but now needs money to feed, he won't wait for price rise and etc, will sell those bitcoins to get money asap and feed himself. So from this logic price of bitcoin will fall in any way during economic crisis.

[sana54210]

To what extent will the economic war (between the US and China) affect its future impact on the bitcoin?
Will these countries resort to bitcoin to maintain their economic strength?  And avoid economic sanctions among them?
Will Bitcoin succeed in maintaining its strength and stability as it is not under central authority?

The war is almost over and as you can see that President Trump is already reaching out to china to already have an understanding and a peaceful talk with him which could lead to the final solution to the war, so I don’t really see their war really lasting that long any more.

For the government of china and US, honestly both ate too adamant and I don’t think they will think of bitcoin as solution for now except people forces their hands down, and the only way that people can force them to accept it is if very large percentage of the country’s citizens are already using bitcoin, then it would be very difficult for them to control it even if they place ban on it, by that time they will have no choice than to also consider it but till that happens, I don’t expect any effect of their war on BTC.

[omonuyak]

Bitcoin has started reacting to some economic news that affect USA and other developed countries and that is a sign of interest from citizens of those countries. I think bitcoin should benefit from the financial crisis or trade war between China and USA and it should naturally influence bitcoin price as investors will flip stocks and other securities to bitcoin as a safe heaven.

[Baofeng]

Bitcoin has started reacting to some economic news that affect USA and other developed countries and that is a sign of interest from citizens of those countries. I think bitcoin should benefit from the financial crisis or trade war between China and USA and it should naturally influence bitcoin price as investors will flip stocks and other securities to bitcoin as a safe heaven.

What made you say that? Recently, the domestic woes between China and Hong Kong was thought to push either country to hedge their wealth on bitcoin, but so far we haven't seen the effect. But as so far as the impact of the China-US trade war, it is still 50/50 in my opinion. If could have an impact, but it's gonna be short term though. Investors will likely put their wealth to a stable investments like gold or even real state.

[Altero]

Bitcoin has started reacting to some economic news that affect USA and other developed countries and that is a sign of interest from citizens of those countries. I think bitcoin should benefit from the financial crisis or trade war between China and USA and it should naturally influence bitcoin price as investors will flip stocks and other securities to bitcoin as a safe heaven.

As this big country will finally be opened for crypto acceptance to their citizens it will be a big help to escalate the market price into good. The influence of these two countries will give a huge impact to the market flows and more investors coming from them will put interest and the other country also may follow.

[Janation]

I don't think they will resort to Bitcoin.

They might be able to get some profits out of it but I don't think they will be using it to maintain their economy since we all know how volatile it is. Some countries might talk to some whales in able to shift the price of it so that will really affect China if they resorted to Bitcoin. I think they will stick to what they great right now, the trading industry still.

[Stakeey]

Over the longterm bitcoin is more likely to mantain its stability and thus outperform fiat but over the short term volatility will probably remain high

[bitmover]

Most people keep trying to paint BTC as a "safe haven" in the face of shaky USD, CNY/RMB, Chinese and American stock markets. But I think we are still very far from Bitcoin truly being a safe haven asset.

That is to say, I think Bitcoin is rising in spite of investor fears in the broader markets, not because of them. If shit really hits the fan (global financial crisis, deep recession), my opinion is that Bitcoin will suffer dearly.

I agree, bitcoin is not a safe haven asset. Bitcoin never saw a global crisis before, so nobody knows how will it react.

I believe it will not be a safe haven, it will bleed, but maybe not as much as the stock market.



In 2017, when there were tension with North Korea X US/South Korea bitcoin price trended up.

https://www.ccn.com/bitcoin-price-trends-us-north-korea-tensions-heighten/
Although it is difficult to calculate the impact of global volatility on the bitcoin price, CCN has previously documented a correlation between U.S.-North Korean tensions and an uptick in the bitcoin price. Last week, for instance, the bitcoin price surged $260 on the same day that a North Korean diplomat accused the United States of taking actions tantamount to declaring war.

That is not a global crisis, and North Korea is not China... I know it is different, but there are some similarities.

In that case, had the tensions escalated a war between North/South Korea could lead money from South Koreans to BTC, as they love BTC there.

In the case of a global crises, if SP500 drops 40% and bitcoin only 30%, we are good. The problem is that a global crisis is the perfect time to cash out and buy more stable assets, such as ETFs and bonds. So we will certainly see some selloff in BTC in that case, IMO.

[suzanne5223]

To what extent will the economic war (between the US and China) affect its future impact on the bitcoin?

In my opinion, the economic war between the US and China does not have an impact on the price of bitcoin because the war between US and China is something that has to do with the government while bitcoin is decentralized and control by the crypto communities.
I think it because you expect too much from the market due to the upcoming halving which doesn't mean the market won't experience dump in price sometime before it halving.

Will these countries resort to bitcoin to maintain their economic strength? 

There's a possibility for bitcoin to maintain the economic strength the individual who is from the US and China but I'm sure it will maintain the economic strength of the two countries since there stance about bitcoin is different.

And avoid economic sanctions among them?

Honestly, bitcoin cant avoids economic sanction for every country is useful to others in some aspect.

Will Bitcoin succeed in maintaining its strength and stability as it is not under central authority?

The US and China are not the only countries where there's bitcoin users or investors and I don't see any reason why bitcoin won't keep up with its strength and stability.

[LAXMI79]

Bitcoin currency stability is confirmed because its a decentralised currency. and the faith of people are incresed day by day in bitcoin so it is the demand and need of future world.

[Mor254]

To what extent will the economic war (between the US and China) affect its future impact on the bitcoin?
Will these countries resort to bitcoin to maintain their economic strength?  And avoid economic sanctions among them?
Will Bitcoin succeed in maintaining its strength and stability as it is not under central authority?

The war is almost over and as you can see that President Trump is already reaching out to china to already have an understanding and a peaceful talk with him which could lead to the final solution to the war, so I don’t really see their war really lasting that long any more.

For the government of china and US, honestly both ate too adamant and I don’t think they will think of bitcoin as solution for now except people forces their hands down, and the only way that people can force them to accept it is if very large percentage of the country’s citizens are already using bitcoin, then it would be very difficult for them to control it even if they place ban on it, by that time they will have no choice than to also consider it but till that happens, I don’t expect any effect of their war on BTC.

If the war ended.Economic warfare and pressures can never end.
Every country is trying to impose its authority.
The Bitcoin revolution cannot succeed without state consent for its citizens to use currency

[elda34b]

In the case of a global crises, if SP500 drops 40% and bitcoin only 30%, we are good. The problem is that a global crisis is the perfect time to cash out and buy more stable assets, such as ETFs and bonds. So we will certainly see some selloff in BTC in that case, IMO.

I see this scenario very likely to happen. I believe most people still believe in old, time-proven stable assets such as gold, so if there's some major disaster, those assets are likely going to be the place where most money went. Bitcoin will bleed hard, but if it survives, there's a possibility that volume will increase later so that price discovery is possible.

[qwertyup23]

To what extent will the economic war (between the US and China) affect its future impact on the bitcoin?
Will these countries resort to bitcoin to maintain their economic strength?  And avoid economic sanctions among them?
Will Bitcoin succeed in maintaining its strength and stability as it is not under central authority?

Access to bitcoin or any kind of cryptocurrency is restricted in China. This would impact the price significantly since most miners come and originate in China. The implication would affect the future outcome and price of bitcoin considering that its acceptance is on the process of being accepted to countries.

I doubt that these countries would resort to bitcoin to maintain their economic strength, as what was stated on your argument. Although securing this type of investment may yield opportunities, economic strength can be drawn into different financial factors.