Forkast News: Daniel Popa on U.S.-China Trade War Link to Crypto
Forkast.News: In this opinion piece, Daniel Popa, Anchor Founder and CEO, discusses the rising U.S-China trade war tensions and highlights the need for a viable Stablecoin. Read full article >>
Forkast.News is a global digital media platform that covers the transformative impact of blockchain technology on all sectors. Daniel Popa, Anchor founder and CEO, decided to contribute to their website by giving his insight on the Rising U.S.-China Trade War and how these tensions have highlighted a need for a Viable Stablecoin to act as a a Financial “Safe Harbor”.
In the midst of rising U.S.-China trade war tensions over sanctions against Iranian oil, investors are likely to look to bitcoin and other cryptos as alternative options to traditional stocks and other fiat-driven investments. Daniel discusses how whilst uncertainty in traditional markets has benefited the crypto market, volatility remains a substantive issue for investors seeking long-term price stability.
Recent trends highlighted in this piece show investors turning to bitcoin and other cryptocurrencies in the wake of turmoil in traditional markets. According to Grayscale, bitcoin gained 47% in the downturn following growing unrest around U.S.-China trade relations. Bitcoin also performed well in other economic events, such as Grexit and Brexit.
The problem is that many traditional investors and money managers expect price fluctuations to fall within a range considered “normal” by fiat market standards. Managers of pension funds and endowments, for example, seek investment opportunities that offer little risk and promise gradual appreciation in value over time; however, there is no existing crypto or fiat currency that successfully accomplishes this to its fullest potential.
A digital currency that is resistant to market instability, volatility, and political biases, which does not depend on the strength or weakness of fiat markets would potentially transform the global economy to one centered around a safe harbor for investor holdings. Read the entire article here.
Title photo by Jason Leung, Unsplash.