Could the tariff war lead China's switch to Bitcoin?

[TravelMug]

It won't solved any for the Chinese to switch to Bitcoin because of the tariff war. They still need to find and make money for their export/import from the US.

But with a higher tariff being imposed by the US, this is going to be very hard for them as they also rely to the US for goods no matter what. Switching to Bitcoin might just make it worst though. If there is something that they can do, then  force BRICS to used Yuan or Rubbles and stay away from the US dollar.

[SamReomo]

China could've switched to Bitcoin way earlier as there were so many mining farms in China and it used to have so many awesome miners. However, it din't consider Bitcoin that much and that's why it didn't switched to it. They won't switch to it now as well as that would adversely impact their currency.

[Basedjack]

The tariff war has a strong impact on many countries, especially the Chinese. But even if it affects the Chinese, they do not want to deal with it. Because their country does not need much Bitcoin. Although the Chinese have already converted the amount of Bitcoin they had. Due to this influence, investors in other countries are facing risks. Because Bitcoin has fallen by 25% compared to this year. Investors are blaming Trump for this. The market has been going down, especially because of Trump's progressive role.

[TomPluz]

Certainly, there can be some savvy Chinese investors and businessmen and even ordinary guys like us who are looking at Bitcoin as an alternative all because there is a big chance that Yuan can be affected but overall I don't see a massive shift to Bitcoin all because of the ongoing tariff war initiated by Trump and is working against the economic interest of China. Eventually, this tariff war with China will be settled gradually as China will realize they could not afford to lose the huge USA market. Other countries are already on the negotiation table...and what we saw in the past days is just Trump stirring the pond  so the global market will listen with the message that this time he is serious.

[Mpamaegbu]

I had once written a post some weeks ago on the Chinese government continuous stand on crypto, and i stated that, "China may have a loose end on it crypto stand in near future".
Now based on the current Tarrif war, do you think that China will reconsider it initial crypto stand, that is, the crypto banned?

To be frank, I don't give a damn how China handles this ongoing tariff war with the US, whether she switches to cryptos or continues to maintain the Yuan. I'm nonchalant about all that because China did this industry dirty in 2017 with a ban on cryptos that nearly shattered the crypto space. Let her bear her burden.

[Bobcrypto]

The tariff war has a strong impact on many countries, especially the Chinese. But even if it affects the Chinese, they do not want to deal with it. Because their country does not need much Bitcoin. Although the Chinese have already converted the amount of Bitcoin they had. Due to this influence, investors in other countries are facing risks. Because Bitcoin has fallen by 25% compared to this year. Investors are blaming Trump for this. The market has been going down, especially because of Trump's progressive role.

I don't agree with you, Bitcoin is a big alternative on the tarrif war, despite some of these countries alliance with each others to ease the impact of tariff war, China in particular has been doing underground business transactions with Russia.

Take a look here: https://finance.yahoo.com/news/china-russia-settle-energy-trades-012147370.html

In my opinion, Bitcoin may turn the last alternate to settle trading activities between some of these countries that are strongly affected by the tariff war.

[Stompix]

I don't agree with you, Bitcoin is a big alternative on the tarrif war, despite some of these countries alliance with each others to ease the impact of tariff war, China in particular has been doing underground business transactions with Russia.

And how will Bitcoin save China's exports to the USA in this tariff war?

Bitcoin is just a currency, it doesn't matter how you use it and who uses it, The moment a country says everything entering the customs from one other country will be tarriffed 120% it doens't matter how you apdi for, euros, USD, bitcoin, gold, it will still be taxed 120%.
Let's assume Amazon will pay for all its China imports with Bitcoin, how will this avoid tariffs when the value of the goods will be taxed in the customs?

Seriously, how in the name of god will crypto solve anything in this tariff war?

[MrSpasybo]

Many people may think otherwise, but as the tariff war is currently blowing hard on all the country involved, it must have lead to Chinese business switching to Bitcoin as many crypto analysis are showing. Considering that the effect of the tariff war is getting hold on the Yuan, even as Chinese business are diverting their yaun into bitcoin many crypto analyst reported.
I had once written a post some weeks ago on the Chinese government continuous stand on crypto, and i stated that, "China may have a loose end on it crypto stand in near future".
Now based on the current Tarrif war, do you think that China will reconsider it initial crypto stand, that is, the crypto banned?

Check here: https://cointelegraph.com/news/china-counters-tariffs-yuan-devaluation-bullish-btc

It may be very interesting for the Bitcoin community if the Chinese governments is turning to Bitcoin, probably to save the Yuan.

Well, I don't see any value in crypto that could save China in the tariff war or the deflation crisis they're deeply mired in. Unlike Russia, China isn't subject to sanctions, they still have access to $US, and there's no need for them to use crypto to circumvent sanctions. Accepting crypto might bring in income tax from crypto, but I believe it wouldn't be a large enough sum to change China economy.

One possibility for China to change its view on BTC & crypto is if they want to accumulate crypto for a long-term financial race, if they believe that BTC will become very valuable and crypto will soon become an important asset class globally. However, they haven't shared anything yet, they're quietly researching blockchain applications and accumulating gold. BTC isn't their priority, unless they're willing to send 1M BTC to Trump as a gift for tariff negotiations ^^

[Bobcrypto]

I don't agree with you, Bitcoin is a big alternative on the tarrif war, despite some of these countries alliance with each others to ease the impact of tariff war, China in particular has been doing underground business transactions with Russia.

And how will Bitcoin save China's exports to the USA in this tariff war?

Bitcoin is just a currency, it doesn't matter how you use it and who uses it, The moment a country says everything entering the customs from one other country will be tarriffed 120% it doens't matter how you apdi for, euros, USD, bitcoin, gold, it will still be taxed 120%.
Let's assume Amazon will pay for all its China imports with Bitcoin, how will this avoid tariffs when the value of the goods will be taxed in the customs?

Seriously, how in the name of god will crypto solve anything in this tariff war?

Economically speaking, the impact of the tarrif war will affect Amazon because is a US based company. Before now, trades were not settled with Bitcoin between US, China and others countries, but considering other countries with similar tarrif issues with the US; it becomes possible to settle international trades with Bitcoin if other countries has this trades agreement, and the impact of the tariff war will be reduced.
Again, international settlement currency is the US dollar not Bitcoin, and that is one of the reasons the US has been increasing the tarrif rates.

Try to understand the simple economics structure, If Amazon is a Russian based company for instance, settlement is possible with Bitcoin. In addition, US dollar is the world international trade exchange currency, until now, there has not been an alternative means of settling international trade transactions basically because of exchange rate barriers plus other factors, but with Bitcoin, trades globally can be agreed and settled with Bitcoin payments even if these good are valued in US dollar at the point of purchase.

I would love a situation where we can go deeper in to the economics of those whole tariff war besides some political aspects. First, talking about GDP in relations with imports of a country.
In summary, and as an economics,bi think the US has the capacity to produce most of these imported goods from China, but they had decided to import these items due to many factors that we may not discuss at once here.
Now, every nation wants to be wealthy, and economically strong. To achieve this fit, GDP must be very strong, otherwise a notion's economy will suffer, it can even lead to hyper inflation if not handle properly etc.

[Stompix]

I would love a situation where we can go deeper in to the economics of those whole tariff war besides some political aspects.

Yeah, I would love that too because my parents business is exporting stuff all over Europe and importing stuff from all over the world, including machinery from the US.
So, I love to go deeper into this thing because, frankly, you have no clue what you're talking about!
ZERO!!!

In addition, US dollar is the world international trade exchange currency, until now, there has not been an alternative means of settling international trade transactions basically because of exchange rate barriers plus other factors, but with Bitcoin, trades globally can be agreed and settled with Bitcoin payments even if these good are valued in US dollar at the point of purchase

Lol, you clearly don't understand how tariffs work.
I, as an european company can pay for a product to be delivered to a subsidiary in the US from China, I pay in euros, this doesn't affect the tariffs at all, my subsidiary in US will still be forced by the customs to pay the additional sum on the purchase.

Bitcoin doesn'tt solve anything, tarrifs are applied when the products enter the US on the value of the product, the IRS and the Customs don't give a damn how you paid, you could have paid in unicorn farts, if the value of the package is $1000 you will pay $1450 extra, if the value of the package is 1 Bitcoin, you will have to pay 1.45 Bitcoin equivalent at the day of the transactions!

There are miners here that have bought ASICs from Bitmain, paying with Bitcoin, do you think they magically avoided the tariffs Trump set in his first term?
Seriously, stop lecturing people who have years of experience in international trade and logistics about tariffs!

[Lucius]

Why are you guys looking for a way to connect China to BTC at every opportunity, they already made their feelings clear about BTC, and that is that. BTC does not really need approval from China, and China does not need BTC, let it stay that way, no need to bring up theories that don't count.

Because China is the largest country in the world that has banned trading in BTC (and cryptocurrencies in general), and everyone wants that ban to miraculously disappear and for all Chinese to start buying cryptocurrencies and thus pump up the price. Of course, BTC makes no sense for China because it brings them far more problems than benefits - and besides, under this kind of political system, they will never question their national currency and ask for a replacement.

[Aanuoluwatofunmi]

I think i already heard of a news articles which talks about the plan of China together with Russian in using bitcoin, though we never have more clear ground on their individual stands towards this, but we hope its something that will also bring about the economic continuity of the regions as well as those who have seen bitcoin in cryptocurrency as a rescue means from the swift sanction and other way forward for them.

[Gposas]

I guess one of the reasons the Chinese government is against BTC is to keep the value of their currency firm and standing, so now that the effect is coming from the Tariff war, I think they just have to find another way to tackle it because it would be uncertain if they go back to what they've stand against.
Peradventure they see no option rather than accepting what they've already despised, then I don't think anybody can hold them since BTC is decentralized in nature.

[Baofeng]

I guess one of the reasons the Chinese government is against BTC is to keep the value of their currency firm and standing, so now that the effect is coming from the Tariff war, I think they just have to find another way to tackle it because it would be uncertain if they go back to what they've stand against.
Peradventure they see no option rather than accepting what they've already despised, then I don't think anybody can hold them since BTC is decentralized in nature.

That's what they call capital flight, China is preventing the use of BTC that time because their population are putting their money on BTC and then going somewhere else with their hardware wallet.

And even with this tariff war against the US, i do not see them suddenly flip the switch and siding with BTC. It might be good for them in the long run, but they are too proud to admit it.

[LogitechMouse]

Why are you guys looking for a way to connect China to BTC at every opportunity, they already made their feelings clear about BTC, and that is that. BTC does not really need approval from China, and China does not need BTC, let it stay that way, no need to bring up theories that don't count.

Are you sure about that?

Remember that JPMorgan had a negative stance about Bitcoin a few years ago. Now, they aren't supporting it, but their stance is completely different from what it is. The best example is Larry Fink of Blackrock where he said negative things about Bitcoin in the past as well same with Jamie Dimon, but now he already included Bitcoin in his company, Blackrock.

Many are looking for a connection between the two because investors want good news, and when the CCP change their stance about BTC, that would be good news for them hence, pushing the price upwards. Yes, BTC doesn't need China since Bitcoin will be fine without them but isn't it a positive news if we will see on the article "China is buying Bitcoin. Has changed their stance about it." as the headline?