Cryptocurrencies To Benefit as Trump’s Trade War Intensifies

The US is set to impose additional tariffs against multiple countries in the coming days. The latest one is set to go live today which will impose additional tariffs of $34 Billion for products imported from China. China has also threatened to retaliate by adding tariffs of $34 Billion on American imports. To this, Trump has vowed to add $200 Billion tariffs if it happens.



US’s trade war is not just with China. Trump has also threatened the EU with more Tariffs. If that goes through, the EU is already ready with a new set of duties for American products worth approximately 18 Billion Euros.The US has already imposed additional taxes on Indian products. India has now responded with $231 Million tariff hike on 30 US products.

The global economy is at a low, with multiple currencies at their lowest point. Indian Rupee, for the first time in 5 years fell down below Rs. 69 last week. Chinese Yuan has also taken a substantial hit. Yuan has fallen down by 10% since April 2018 after Trump announced the tariffs. Shanghai Stocks have also gone down by 25% in 2018 alone.

Cryptocurrencies thrive when countries battle uncertain economic policies. Bitcoin saw a significant uptick when Brexit happened last year. Similarly, Chinese traders flocked to cryptocurrencies when the Yuan was devalued a few years ago. However, this time around the Chinese government has banned the trade of cryptocurrencies. But the trade still continues, in a peer-to-peer, OTC manner instead of exchanges.

As The US goes on a trade war with multiple countries, the value of national currencies are expected to come down, including the US dollars. Investors are going to look for alternate ways to store their wealth. Traditionally, precious metals like gold and silver have been used. But acquiring gold is not easy. Once acquired, it is even harder and expensive to securely store them.

Cryptocurrencies, especially Bitcoin is often referred to as digital gold. It is scarce. The total supply of Gold is unknown. But the total supply of Bitcoin is fixed at 21 Million. Securing Bitcoins is also as easy as securing a tiny hardware wallet. It takes a good while to move Gold from one country to another. Bitcoin, on the other hand can be sent instantly for a tiny fee. Just last week, $500 Million worth Bitcoin was transferred for just $2!

Cryptocurrencies are extremely volatile. So we may not see investors go full on cryptocurrencies yet. However, smart investors with an appetite to diversify have been actively investing in Bitcoin and other cryptocurrencies. It is set to increase as economic instability impacts multiple countries from the trade war that the US has just started.


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Author: Vignesh S
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Trade War Fears Between China And U.S Boosts Crypto Market

Crypto market gains $16 billion today as economic fears over an imminent trade war between global superpowers US and China, drives investors towards decentralized assets


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US President Donald Trump’s latest response to levy a further tariff on a further $200 billion worth of Chinese imports, has created widespread fears of an imminent trade war.

The escalation between Washington DC and Beijing’s tit-for-tat tariff war has been triggering widespread uncertainty throughout both nation’s financial markets, with the Nasdaq COMP index, S&P-500, Shanghai Composite and Nikkei 225 index all suffering losses today.

“The trade relationship between the United States and China must be much more equitable,” President Trump said. “The United States will no longer be taken advantage of on trade by China and other countries in the world.”

This political posturing sparked off last week when President Trump decidedly slapped a trade tariff on $50 billion worth of Chinese imports, in a bid to compensate the United States for what he believed to be years of alleged Chinese intellectual property theft. The far east responded in kind and threatened to place a like-for-like tariff on all US imports into China unless the new punitive tariff was removed. In an attempt to strong arm the opposition, President Trump fought back by asking U.S. Trade Representative Robert E. Lighthizer, to draw up a list of $200 billion worth of Chinese products that they can attach a further tariff to, including an additional $200 billion worth if China retaliates.

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Overall the potential tariff charges could hit $450 billion worth of Chinese products entering into the US, which is likely to spill over into the working classes and create havoc for the citizens of both economies.

Meanwhile amidst this trade war, the geo-political unrest has directed a surge of capital back into the global crypto market, as individuals on both sides of the pacific withdraw into decentralized virtual assets to protect their interests. The global market capital has enjoyed a $16 billion increase in the last 24hrs and is looking promising to retrace back towards $300 billion, as US and Chinese stock market FUD increases.

On the Bitfinex exchange, BTC/USD trading pair is currently accounting for nearly 5% of all Bitcoin trades today, as investors buy into BTC to hedge against the falling US dollar market.

It’s likely that as this war continues between the two superpowers, smart investors will seek to leverage this opportunity to make profits; taking advantage of fact that both the traditional financial market and the crypto market operate on completely separately plains.

This means that the crypto market could continue to improve as tensions rise and international trade concerns deepen, lifting the digital assets out of a long bearish period.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author Ollie Leech
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China to scrap foreign auto ownership limits by 2022

China will scrap foreign ownership caps on local auto companies by 2022 and will remove restrictions on new-energy vehicle ventures this year, a major shift that will open the market wider to car makers from Nissan to Tesla Inc.

The country will scrap the limits on firms making fully electric and plug-in hybrid vehicles in 2018, commercial vehicle firms in 2020 and lift restrictions on the wider passenger vehicle market by 2022, China state planner said in a statement.

The moves signals the end of a long-standing rule in the world’s largest auto market where foreign car makers can currently only own a 50 percent share of any local venture, a policy put in place to help support domestic car makers compete against more advance international rivals.

The move also comes after President Xi Jinping said last week the country would scrap ownership limits “as soon as possible”, encouraging global auto brands even as a fierce standoff over trade intensifies between Beijing and Washington.

The rule change could boost U.S. electric vehicle maker Tesla, which has been seeking to set up a wholly owned plant in Shanghai. Tesla chief Elon Musk said last month China’s auto rules created an uneven playing field.

Tesla and scores of others from traditional automakers to technology firms are all competing for a slice of China’s fast-growing new-energy vehicle market as the country looks to impose tough new tariffs to encourage production of “green” cars.

China will also scrap foreign ownership limits in the ship and aircraft manufacturing industries in 2018, the National Development and Reform Commission (NDRC) said.

 


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Author: Norihiko Shirouzu, Adam Jourdan
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Russia sanctions: Shares in Deripaska-controlled firms crash

Shares in firms controlled by Oleg Deripaska have plunged after the US imposed sanctions on seven Russian oligarchs and their companies on Friday.

Shares in the Russian aluminium giant Rusal nearly halved on the Hong Kong stock exchange on Monday.

EN+, the aluminium to hydropower firm controlled by Mr Deripaska, dived by 25% in London.

Russia’s main share index plunged 11% on Monday in the wake of the sanctions.
They follow a diplomatic crisis sparked by the poisoning of former spy Sergei Skripal in Salisbury.

The measures affect the seven oligarchs, 12 companies they own or control, as well as 17 senior Russian government officials.

The Kremlin slammed the sanctions. “This is an outrageous business from the point of view of illegality, from the point of view of flouting all the norms, and of course careful analysis is needed here,” said spokesman Dmitry Peskov.

The Russian government was “doing everything possible to minimise negative consequences” of the US measures, he added.

According to Washington, the individuals and companies were targeted for profiting from a Russian state engaged in “malign activities” around the world.

Other magnates hit by sanctions include Alexei Miller, director of state-owned energy giant Gazprom.

Technical defaults

Rusal, which produces about 7% of the world’s aluminium, said it regretted its inclusion on the new US sanctions list.

The company said the sanctions were likely to have a “materially adverse” impact on its business and finances.

The Moscow stock market plunged more than 11% on Monday, while the rouble fell 2% against the US dollar, as investors assessed the effect of the sanctions.

Shares with Russian exposure listed elsewhere were also hit. Shares in Russian steelmaker Evraz were the biggest fallers on the FTSE 100 in London, down 18%.

“The US list may not be the final list and it feels like there will be more sanctions, so investors do not know which, if any, stocks to hold,” John Meyer, mining analyst at SP Angel, told Reuters.

“US investors have to sell their interests in Rusal and En+ among others by 7 May.”
Jasper Lawler, head of research at London Capital Group, added: “The sanctions make it almost impossible for these Russian firms and their billionaire owners to transact in US dollars, the main currency used in international trade and the standard denomination for commodities.”

The US said it imposed the latest sanctions because of Russian activity in Ukraine, its support of President Bashar al-Assad in Syria’s civil war and for subverting Western democracies.

It has also expelled dozens of Russian diplomats in response to the poisoning of a former Russian spy in the UK.

On Friday Russia’s foreign ministry said there would be a “tough response” to the sanctions.


 

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Author BBC News

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