Reporting from the BTC Manager, US President Donald Trump has made a call to the country’s monetary policy makers to match with China and the European Union (EU) in adopting a dovish policy (central bank policy when reading a slowdown in economic growth which is usually characterized by a decrease in inflation). In a tweet on July 3, 2019, President Trump accused China and Europe of playing “currency manipulation.”
According to the Trump administration, the recent monetary policy coming out of the two regions of China and Europe is an attempt to weaken the strength of the US dollar. As such, the US President wants the Federal Reserve to act in the same way to reduce interest rates and enter permanent quantitative easing.
Some bulls or supporters of the rise of Bitcoin like Jameson Lopp from Casa believe that the economic conflict between the US, China and the European Union (EU) will eventually prove positive for BTC. Twitter in response to President Trump, Lopp argues, “There is one perspective that Bitcoin does not need to do anything else to become a global reserve currency, because bitcoin oversees other systems that are sure to fail under the ignorance of humans who can change.”
With central banks all over the world abandoning hawkish policies to carry out dovish policies, the result is unlimited money printing that is likely to be used to artificially sustain key markets. If history is something to go through, the increasing stock market situation resulting from such policies is unsustainable, leading to a global economic crisis.
While Bitcoin bulls remain convinced that the central bank is making substantial policy mistakes, BTC is enjoying its popularity in 2019. Even with a series of decreases of 20 to 30 percent, bitcoin has still risen by more than 200 percent since early 2019.
According to David Mercer of the LMAX Exchange, bitcoin such as digital gold is becoming “an authentic alternative as a safe place to invest.” In a recent article in the Financial Times, it was shown that the BTC’s latest rally planned similar pricing actions by mainstreaming assets safe like gold and Swiss Francs.
Excerpts from the article, “The rally also coincided with surging prices of the best safe assets, including the Japanese Yen, Swiss Franc, and gold. For people who really believe, it is a sign that bitcoin has gained a place among assets that benefit while going to a safe place. ”
Even media organizations in China, a country that bans bitcoin trading, support the same sentiment, identifying BTC as an asset of heaven.