A Global Trade War Could Push Bitcoin To Over $100k!

For some time now, experts have been arguing that bitcoin is more of a store of value than a currency, just like gold. Now the thing with gold is that anytime there is uncertainty in the markets, its value tends to go up. Case in point was the 2008 financial crisis when the value of Gold skyrocketed as investors, fled from the stock markets. Has bitcoin showed the same attributes for it to be pronounced as digital gold? Well, the answer is YES. There are signs that investors are looking to bitcoin as a safe store of wealth, in times of uncertainty.

The first sign to this was a few weeks ago when the Dow Jones dropped by several percentage points. During that period of panic that caught investors flat-footed, bitcoin actually shot up significantly despite the fact that the crypto market was deep in the red. Then yesterday bitcoin broke above the $11,000 mark, after Trump announced that, “Trade wars are good.”

This makes it a perfect time to buy bitcoin. That’s because if Trump actually makes good his threat of driving the United States down the road of a trade war, the stock markets all across the world will get very murky. Already the Dow Jones has shed some points after the pronouncement.If the uncertainty continues, expect investors to flock into bitcoin as they watch the market for signs of stability. You are probably wondering, why investors would choose bitcoin over gold itself? The reason is simple, returns! In the last one year, bitcoin has seen unprecedented returns, increasing in value from lows of $1000 in January 2017, to $20,000 in December the same year. This potential to increase in value by thousands of percentages at a go, is what is likely to drive investors into bitcoin, as opposed to gold if a global trade war ensues.

Then there is the fact that the supply of bitcoin cannot be manipulated. There is a fixed supply of bitcoin, and no one can change that. That’s not the case with gold. Gold can be manipulated by wealthy multinationals that control its supply chain. In fact, all minerals are easy to manipulate. This explains why diamond despite having a very large supply, is controlled by one corporation, just to give it value.In the past, investors would flock to gold in times of uncertainty simply because there was no alternative. However, now that there is an alternative that is tamper proof, you can expect bitcoin to be the go-to asset in times of uncertainty.

With all these factors in favor of bitcoin over gold, expect the value of bitcoin to shoot up the moment the first real retaliation takes place in response to Trump’s trade war rhetoric. Already bitcoin has gained over 10% in the last 24 hours after the EU announced that it would be introducing tariffs on some U.S products. Once China and other nations join in, bitcoin could easily hit $100k! It’s time to HOLDL.