Analysts criticize the financial implications of the import tariffs of the American president Donald Trump, a development which, according to some, highlights the unique economic properties of Bitcoin in times of global uncertainty.
The 90 -day Trump break on higher reciprocal prices, rendering them to a reference of 10% for most countries, except China, exposed vulnerabilities on the US bond market, according to criticism.
Economist and author of Bitcoin standardSaifdean Ammous, said that Trump’s decision to overthrow higher prices was probably a reaction to the increase in bond yields, which suggests that the administration’s hand was forced.
“Trump fought the bond market and the bond market has won,” said Ammous in a post on April 23. “The Gambit seemed to work for the first day, and the huge stock market accident was presented as a small price to pay budget sustainability.
“But then, the obligations began to crash, and it became clear to what extent the prices were disastrous, and how wrong it was to expect the stock market to be deliberately stimulated the bond market,” he added.
In relation: Trump’s tariff climbing exposes “deeper fractures” in the global financial system
The treasure gives a peak after moving the price
After the announcement of Trump’s tariff, CNBC data show that the 10 -year -old yield has increased from less than 4% to 4.5% in the midst of a sale pulled by inflation and recession problems.
“The increase in yields was exactly the opposite of what the administration wanted, and reverse the course on the prices half a day after their entry into force was absolutely devastating for Trump’s negotiation position,” said Ammous.
Some analysts, including the founder of Macro-Investisseurs Raoul Pal, have suggested that tariff maneuvers are only “posture” for the United States to reach a trade agreement with China.
“All discussions on the closure of China under the threat of Trump now seem to be retrospectively hilarious, while Trump could not maintain his prices in place for two days,” said Ammous, adding that China “showed absolutely no inclination” to reach out and conclude an agreement.
According to Nansen analysts, delays in the conclusion of a trade agreement can limit the resumption of actions and cryptocurrencies, which depend on the results of commercial negotiations, according to Nansen analysts.
Meanwhile, Bitcoin (BTC) acts “less like a technological stock and more as coverage against economic uncertainty”, after Trump reported a “substantial reduction in prices on Chinese products,” said Nexo Dispatch analyst Iliya Kalchev.
In relation: Crypto, actions fall into the “new phase of the trade war” as American-Chinese tensions increase
Trade Wars revives the need for a Bitcoin standard
The situation has relaunched long -standing proposals to support the US dollar with Bitcoin.
Ammous said the United States should continue to buy BTC until the government is enough to support the dollar offer, finally going to a Bitcoin standard:
“Continue to buy bitcoin until the Bitcoin value held by the US government is sufficient to support the entire offer in US dollars, then go to a bitcoin standard where dollars are exchangeable for Bitcoin, and that the government never spends more than it wins.”
Historically, the dollar was supported by gold and exchangeable for a fixed quantity of precious metal until 1933, when President Franklin D. Roosevelt suspended the convertibility into gold in response to the great depression.
In 1971, President Richard Nixon interrupted the convertibility of the dollar into gold, aimed at protecting gold reserves in the United States and stabilizing the economy, marking the start of the fiduciary money system that remains in place today.
The fixed supply of Bitcoin, which is coded hard in its Tokenomics, makes it a popular digital competitor of gold.
Joe Burnett, director of market studies at Unchained, predicted that Bitcoin could compete with the Gold market capitalization or exceed the next decade, providing that Bitcoin prices will exceed $ 1.8 million by 2035.
https://www.youtube.com/watch?v=hb0z1ti8uys
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