Bitcoin: A Hedge for Trump’s China Trade War?
Global uncertainty is good for Bitcoin investors, it seems.
As trade talks between the United States and China broke down earlier this month, the price of Bitcoin soared higher than it has all year. Market watchers have speculated that the cryptocurrency, commonly referred to as “digital gold,” benefited from investors’ jitters in the equities and foreign exchange markets, which sent stocks and China’s currency downward.
Barry Silbert, CEO and founder of Digital Currency Group, a cryptocurrency firm, made note of this trend on the latest episode of Fortune’s Balancing The Ledger show. “It’s certainly interesting that the [Bitcoin] price started its acceleration, moving up and to the right, when the trade discussions broke down,” Silbert said.
Bitcoin boosters such as Silbert have long argued that the virtual coin could afford protection in hairy economic situations. “I think [Bitcoin is] serving as a bit of a non-correlated asset,” Silbert said, meaning an asset that is insulated from the vagaries of the traditional financial system, as “people always expected Bitcoin would be.”