Why Trump’s new tariffs bode well for your crypto investment?
US President Donald Trump tweeted Thursday that he would put “a small additional” tariff of 10% on the 300 billion dollars of Chinese-made products on September 1. “It can be lifted in stages so we’re starting at 10% and it can be lifted up to well beyond 25%,” the President said. “But we’re not looking to do that, necessarily.”
This new round of levies would come on top of the 25 percent tariff that has already been imposed on $250 billion Chinese imports. Trump’s move came after China’s failure to honor its commitment to buy more US agricultural products and stem the flow of fentanyl into the United States.
Trump’s tweets sparked market mayhem across the globe. US stocks, which had rallied a day earlier, quickly dropped back into negative territory. Asia stocks also tumbled in the wake of this surprise announcement. Oil market is among the hardest hit victims, which suffered a meltdown immediately after the news broke.
Meanwhile, the prices of some major cryptocurrencies bucked the trend, with Bitcoin seeing a nearly 6% rebound. The crypto market sentiment is apparently more bullish.
The logic behind the phenomenon is simple: whenever an external force (such as war, policy) triggers a market turmoil, the decentralized nature of crypto will appeal to risk-averse investors. That’s why the price spikes of major cryptocurrencies came as no surprise to market veterans.
As the leader of the pack, Bitcoin boasts unparalleled edges:
· Low Volatility
The price of Bitcoin is relatively stable compared to other emerging cryptocurrencies. Bitcoin is the first decentralized cryptocurrency, and its price was highly volatile during the first few years of its inception. As time flies, the crypto has stabilized and witnessed a steady increase in its value.
· Low Correlation to the Market
The price of Bitcoin is relatively unaffected by the macroeconomic conditions, make it an ideal hedging instrument.
· Low Fraud Risk
Bitcoin is the only payment method that is 100% irreversible and cannot be charged back. Transactions are not encrypted, so it is possible to browse and view every transaction ever collected into a block. Once transactions are buried under enough confirmations, they can be considered irreversible.
· Maximum Security
The system is purely peer-to-peer, and your Bitcoins cannot be stolen or seized by any individual or government under any circumstances.
· Quick & Cheap Transactions
Anyone can accept Bitcoins within minutes. No paperwork required. Download a Bitcoin Wallet program then generate a Bitcoin Address, and you’re ready to send and receive Bitcoins! What’s more, transaction fees for bitcoin payments are remarkably lower in comparison to the ones made for credit and debit card purchases!
· User Anonymity
It is possible to send a payment without revealing your identity, and the payment cannot be traced back to you. The anonymous Bitcoin address that is generated for user purchases changes with each transaction, keeping your identity firmly under the table.
· Low Inflation Risk
Inflation is primarily caused by an increase in the money supply that outpaces economic growth. But bitcoin began life as a system with finite supply (and that number is speculated to be around 21 million), effectively reducing the risk of inflation to almost zero. Thus, the value of Bitcoins in your pocket is guaranteed.
· High Interest
Bitcoin enjoys ultra-high interest rate in crypto fixed deposit service right now. POKKET, one of the leading crypto deposit service provider, is currently offering 18% APR on deposits.
If you prioritize stability amid all this market fluctuations, you may be interested to visit pokket.com or follow our official twitter account https://twitter.com/PokketOfficial to learn more about crypto investment.