Top 3 reasons that can lead to the growth of Bitcoin as the main global asset?

We are all waiting for the flight of Bitcoin to the moon only for the reason that this has already happened, and we also believe that sooner or later the whole world will understand how much cryptocurrency is better than fiat money.

But why should this happen? What global factors can lead to the fact that investors will start buying Bitcoin not because of fear of missing the native, but because it will become an attractive and useful asset for them?

Trade wars

Donald Trump can literally send a bitcoin into space with just one tweet; it’s enough to write that the USA recognizes it as a means of payment. But Trump decided to go a long way and started a trade war with China.

It should be noted that similar disputes between countries are constantly going on and around the world, because each adequate state tries to protect its interests in the international trade arena. Just now, this confrontation came out in the top of all news feeds. And it is possible that Trump just really wants to remain president and, therefore, made all this mess.

But let's not talk about politics, but evaluate the prospects of Bitcoin in the light of these events. The current trade war between the United States and China, as well as a similar showdown between other countries, is not the reason for the recent rise in Bitcoin. If only because the international corporations involved in this conflict do not use cryptocurrency for settlements.

And if they wanted to do it, it would not have given anything, because it does not cancel the restrictions imposed on them at the legislative level. Who can try to find loopholes with the help of Bitcoin is a small and medium business, but for now this is only a grain of sand in the sea and is unlikely to have influenced the course right now.

More importantly, from a global perspective, the tightening of trade wars may lead to a decrease in stock markets and an accelerated devaluation of national currencies. But this is already an argument, because big business will think about how to save its billions of dollars and start looking for alternative assets.

Stock market crash

Now let's talk about the possible collapse of the stock market. Remember how bitcoin was often compared to the dot-com bubble ? So, this story can be repeated in the near future.

The thing is that technology companies that have successfully survived the history of the dot-com companies are not in a better financial position. And let everything look extremely good and no one disputes the superiority in the market of the same Apple or Google.

But, judging by their latest reports, the pace of sales and, consequently, the growth of both IT giants slowed down significantly and they seriously think about the need to reformat the business. Yes, and shares of IBM and Amazon look significantly overheated.

You can also recall the recent IPO from Uber and Lyft. It seems to be successful and even entered the stock market, but in essence they are unprofitable and investors who believe in their prospects, expect that the price of shares will rise in the long-term. And what if not? If their promotion strategy doesn't work? How cool are the stock market hodlers?

But the most important guy in this whole company, of course, is Ilon Musk. Suffice it to Tesla just a hint of bankruptcy. As the shares of most high-tech companies fall sharply in price and sink the stock market in blood.

The plan is very simple. We buy cuts, close Tesla and fly away to the moon without any rockets. How do you like that, Ilon Musk?

Hyperinflation

And the third on the list but not the least reason, because of which Bitcoin can significantly increase in price. You are precisely aware of the growth in demand for Bitcoin in countries where the national currency has turned into cutting paper or is seeking this state.

Now Venezuela is the best example of such a situation, but in the same Argentina and Turkey things are not going well either. And it is only natural that the worse the national currency does, the more people turn their attention to cryptocurrencies. After all, it is a convenient and reliable way to make savings, and in cases they can be used to purchase goods and services.

Skeptics will say that it is difficult to buy something for Bitcoin. But let them go and try to buy products in exchange for a gold bar. And it is also important not to forget that in 1933 the USA confiscated gold from the population and why should they or another country not repeat this trick when they burn it?

But while hyperinflation is destroying the Venezuelan economy, this, of course, contributes to the growth of demand for cryptocurrency, but is not a global trend. And what if such events begin to occur in a country that is really important to the global economy?

After all, the prerequisites for such a development are sufficient. For example, the Chinese economy will not stand the trade confrontation with the United States, the British pound will fall down because of the tough version of Brexit, they will pass through Russia with new and really serious sanctions. And if the citizens of these countries start buying Bitcoins in the mass, then it will be a truly indigen.

Publication date 08/06/2019
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