After the recent stunning election results, Donald Trump is now the President-Elect of the United States of America. Though he will not be taking the oath until January, a lot of people are already feeling the effects of this win.
The Bitcoin world is no exception to this. A lot of experts are actually making predictions right now that Bitcoin will be surging in price after an initial drop.
The Trump “scare”
Donald Trump may have been elected president but he is not exactly considered in high regard, even in the business community. With multiple bankruptcies to his name and a history of bad business decision, a lot of people are worried about the economic state of the US under his command.
This was duly reflected when the Dow Jones dropped to its lowest point since the 9/11 attacks when Trump was confirmed elected as the 45th President of the US. The market managed to bounce back since the low prices attracted buyers, but the sudden drop was a troubling sign.
Besides all those who managed to buy stocks and shares on discount, Bitcoin is the other big winner. It has been reported by Blockchain, the world’s biggest bitcoin wallet provider, that it is having its biggest ever month for activity this November.
Peter Smith, the cofounder and CEO, said:
“We’re setting a new record pretty much every day since the election in terms of activity on the platform. People are basically hedging against economic instability. It’s a worrying time to be holding a lot of British pound or if you’re America — people flee to safe haven assets. Bitcoin is one of those.”
Bad for the economy, good for Bitcoin
Bitcoin as a safe haven is nothing new. The Bitcoin value has been rising for months now on the back of the Chinese demand for the cryptocurrency. Chinese investors have been exchanging their yuan for gold or Bitcoin as a way to ensure their assets are protected as the yuan gets weaker. A weak yuan may be good for attracting foreign manufacturing, but the wealthy do not like getting their riches devalued.
This will be the same for Americans. Bitcoin operates independent of any government so it is not affected by most factors that would drag down other currencies. Only supply and demand affect its prices and many experts are saying that the demand will only go up as people seek to protect their assets.
Trump’s announced economic policies on the campaign trail like increased tariffs on Chinese products and other protectionist moves are seen to be damaging by many in this world of globalized economies. It also does not help that he has claimed several incendiary beliefs that make him disliked by many people. This can impact how the US economy performs in the next four years.
It will be a rough ride for the world economy in the next few years and many think that Bitcoin is the way to survive it.