Could the United States and China enter a cold war now that the coronavirus pandemic is beginning to calm down? According to some analysts, this is very much a possibility, and should both east and west take this route, the results could be quite positive for both gold and bitcoin.
A Cold War Between the U.S. and China?
Both assets have been getting a lot of attention lately from figures such as Robert Kiyosaki, the author of “Rich Dad, Poor Dad.” In a series of tweets, Kiyosaki recently warned investors that the U.S. dollar is on the verge of dying out, and that purchasing items such as bitcoin and gold to add to one’s portfolio is a good idea. He believes that both these items will surge in the coming years, with BTC potentially reaching $75K in roughly three years.
As it stands, relations aren’t strong between the U.S. and China. West is angry with the east, claiming that it is responsible for unleashing the COVID-19 pandemic on the world. President Donald Trump is now requesting compensation from China for the damage it has allegedly caused, while the latter country is scoffing at his request and claiming that such a demand will “poison” their relationship.
In addition, China is also being sued by the state of Louisiana in the U.S. for the same thing.
It doesn’t look like China and the U.S. will ever turn their anger in the direction of a hot war but should competition between these two nations ever become “cold” enough, bitcoin stands to gain quite a bit of recognition. As it turns out, bitcoin has developed a marginal correlation with the yuan over the years, the yuan being China’s native currency.
The U.S. and China are now set to compete even further in the field of currency, or rather cryptocurrency, considering the latter nation is all set to go on the digital version of its national fiat. This currency is already being utilized by several American retailers including Subway, and the U.S. has tried, at certain points, to implement a digital form of the U.S. dollar.
The first attempt came by way of the stimulus package that was approved in March. Many lawmakers voted to have digital funds sent to users on account that it would prevent further contamination. Sadly, this did not go through, and many found checks in their mailboxes over the next few weeks, though this doesn’t mean that the notion of digital USD is quite over.
Crypto Is About to Get Big
Otokita Shun – a Senator from Japan – believes that cryptocurrencies will play a much larger role in society once the coronavirus is over. He states:
In the world after corona, the importance of cryptocurrencies and blockchains will increase. The diet will also call for positive improvements in taxation and regulations that hinder innovation.