The end of the global economic status quo might be approaching as the COVID-19 pandemic continues. What does this represent for Bitcoin in the Future?
To learn more about how the current pandemic affected the two biggest economic powers and its effect on Bitcoins value, make sure to click here.
John McAfee, one of the most recognizable names in the crypto world, predicted back in 2017 that Bitcoin would hit $1 million by 2020.
Although the actual outcome didnt match his predictions, its interesting to note that his logic didnt rely as much on Bitcoins value increasing as on the value of the dollar decreasing.
It is currently possible to observe a downtrend on the dollars value as the Chinese economy explodes, almost as if one was directly the consequence of the other. This is likely to be the case, given the economic conflict that has been taking place between the two countries.
Many experts believe that acquiring as much Bitcoin as possible could be the best way for crypto investors to prepare for the still-developing economic struggles caused by the pandemic.
With Covid-19 still making headlines in the news every day, it is possible to see that the pandemics effects have been far greater than anyone could have predicted. Wall Street and American companies were not ready for an event of this magnitude and the disruptions it caused in the American Economy.
However, while the United States presents political diversion and economic distress, China has grown stronger as an economic superpower by the hour.
Some sources indicate that Covid-19 could have emerged from a laboratory in Wuhan. Although not entirely confirmed, its believed that an animal with coronavirus bit a human in this lab, with the following infections taking place first in Wuhan and soon expanding to other countries.
This has resulted in theories that propose that the initial infection might not have been caused by an accident, given the quick recovery that China experienced and the positive effects it had on its economy.
China was set to overtake the United States economy over the next four years according to most predictions. However, many believe that a plan was orchestrated by the Chinese government to expedite their political and economical supremacy.
The existence of one superpower is a common trend in the worlds history and seems to repeat every few centuries with different countries taking the leading role.
Past eras saw the world ruled by the Roman Empire, then there were the British, followed by Germany in two different instances, and even the U.S.S.R created a dominant nation for itself.
The U.S. has no longer found itself competing with another nation when it comes to military or economic domination after successfully beating the U.S.S.R on the race that ensued after WW2.
That was until now, when China began to rise as a superpower by gaining international recognition, especially in the last year, transforming itself in the only challenger for the United States.
Although China was the epicenter of the pandemic, its economy has surprisingly improved throughout 2020 as its stock market stabilized and has been going up ever since, while 60% of American businesses that have closed might be permanent closures.
China is the second-biggest economy at this time and its expected for it to reach the same GDP as the U.S by the end of 2020. The next target is to surpass the U.S. dollar, which is the federal reserve currency of the world at this time as all countries must own U.S. dollars to do business.
The American government is devaluating its currency, unintentionally assisting the Chinese government, by increasing the issuing of dollars. As so, due to the dollars current loss of value and the growing inflation caused by mass printing, the United States is likely to fall behind if conditions don't change.
It is highly likely that Bitcoins value will skyrocket as demand by investors increases, asBitcoin has proven to be a successful hedge tool when it comes to shielding from drops in USDs value.
As such, a rise in the demand for Bitcoin would be tied to the American Dollars value, which in turn is tied to the American economy. This means that BTCs value will go up as the American Dollar drops.
If the predictions regarding the loss of the USDs position as the world reserve currency occurs, Bitcoins values will be even greater as investors around the world would prepare for the chaos and race that would follow by buying BTC.
Even if the theories about the Chinese government's involvement in the current pandemic are not true, China is still a waking dragon that will eventually devour the US if there are no immediate changes. In any case, the crypto market is waiting to act accordingly.
To learn more about this topic as well as Clintext, a project that aims to reduce healthcare costs using blockchain, make sure to watch Bitboys video bly scrolling up or clicking here.
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