US President Donald Trump announced in the early morning of March 23 that he would impose punitive tariffs on Chinese goods, marking the official opening of his long-simmering trade war with China. According to foreign media reports, the total value of goods will be as high as $60 billion.
At 7 a.m. on The same day, China decided to impose tariffs on some products imported from the United States, starting the first round of countermeasures.
The trade war directly triggered the opening slump of stock markets. On Friday, asia-pacific stock markets opened, with the Shanghai Composite index falling 2.78%, the Shenzhen Component Index falling 3.37%, the Heng Index falling more than 1100 points, Tencent Holdings falling nearly 8% and so on. Capital markets are in extreme panic and risk aversion is high.
Every trade war looks like a full-blown risk off trade in global financial markets, with investors turning to traditional gold as a hedge, and this one is no exception. Yesterday, Asian city spot gold hit a new high of 1335.84 USD/oz in nearly 2 trading days, the intraday increase extended to 0.51%, it can be predicted that with the escalation of the intensity of the trade war, gold will hit a higher node. We might as well switch gears and look for a better alternative to risk, namely BCH.
Although the price of BCH also fell when the trade war broke out, we should not selectively forget what happened the day before the trade war, that is, Japan’s Financial Services Agency issued a warning to the Exchange. Rather than believing that a trade war between centralised financial systems had more to do with the fall in the price of a decentralised BCH, it was more to believe that bad news closely linked to the currency market had more to do with it.
Since the bear market of 18 years, BCH has faced the pressure and improved the ecology. Nowadays, BCH has become a good haven in the face of plummeting stock market and rapidly changing exchange rate. Why?
First, the global regulatory policies on digital currencies have gradually become clear, especially in the G20 summit held two days ago. The G20 has no intention of jointly suppressing the cryptocurrency market, and said that it is “closely watching” the development of cryptocurrency, but at the same time, it remains open to the development of cryptocurrency, and has reached a consensus to regulate the industry in the future. And to treat cryptocurrencies as assets is a direct admission that they have value.
Secondly, BCH has the advantages of decentralization and constant volume so that it can resist the impact of inflation and exchange rate turbulence caused by trade war. In addition, COMPARED with BCE, BCH has a higher technical level, but at the same time, its low and stable price indicates that BCH is less speculative bubble. BCH is relatively safer and more stable, with greater potential for future price increases, and a better hedging option in the cryptocurrency space.
Finally, merchants have flocked to support BCH, with news.Bitcoin.com recently reporting that Bitpay started BCH integration for the company’s loadable Visa debit cards. Since then, the company has implemented BCH invoice support for all of their vendors, gaining support from a large number of merchants. As more and more people hold and trade BCH, BCH will gradually become a financial force that cannot be ignored, highlighting its financial value and constantly improving its ability to face risks.
How do you protect your assets from possible conflict? In a volatile market, BCH is a good choice.