On May 5, 2019, US President Donald Trump announced increased trading prices for goods imported from China. At that time, the tariffs of 10 per cent were defined for around NOK 200 billion of goods. These charges increased to 25 percent on May 10.
Based on Trump's comments, a 10 percent tariff on another $ 325 billion worth of imported Chinese goods could be increased to 25 percent by June 1. Chief Economist Chetan Ahya from Morgan Stanley warns that this action can catalyze a global recession.
While a recession will certainly have negative consequences for many worldwide, Bitcoin can provide indirect benefits.
] Fiat as a weapon
While fiat currencies cannot lead directly to the recession, the global dependence on them.
Currently, the trade war between the United States and China is being fought by fiat currency as a primary weapon. When Trump raises tariffs on imported goods, he forces Chinese exporters to incur new costs. In turn, these costs are likely to be felt by US consumers.
A number of shoe companies have already warned the US government that increased tariffs will increase the sales value of shoes. For example, a pair of running shoes for "performance" that cost $ 150 can jump to over $ 200.
… if additional goods shipped to us by China remain untaxed but will be short, at a rate of 25%. The tariffs paid to the US have had little impact on product cost, mainly borne by China. The trade agreement with China continues, but too slowly, as they try to renegotiate. No!
– Donald J. Trump (@realDonaldTrump) May 5, 2019
Other items ranging from steel and aluminum to animal products may also increase. This can lead to increases across many commodities and price indices leading to inflation or even hyperinflation.
In other words, President Trump seems to be using US Dollar as a weapon against China and the American public. His charges of aggression in the US-led trade war rely on manipulating the value of the dollar to inflate costs directly on Chinese exporters and indirectly on US consumers.
Looking for Bitcoin  As a result, USD has become a weapon used against the American people. Bitcoin and other cryptocurrencies, however, promise an escape from this dilemma.
By using Bitcoin, buyers and sellers can make direct peer-to-peer transactions without banks, governments, or other third-party intermediaries. Currently, the use of dollars and other fiat currencies uses collaborations with governments and financial institutions that produce, distribute, and manipulate the value of the currency.
These entities extend beyond the US government to include the Federal Reserve, US Treasury, and all FDIC insured financial institutions.
While it is true that Bitcoin's value is mainly based on the conversion rate of the dollar, this can quickly begin to change. If individuals begin to see Bitcoin as a stable store of value in themselves, they cannot demand that the dollar act as a basis for valuation. This can fundamentally change the perception of Bitcoin and its use.
Do you think that a global recession can bring new attention to Bitcoin and other cryptographic curves? Please let us know your thoughts in the comments below!
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