While Donald Trump revives trade tensions with China, Canada and Mexico, the markets are agitated. But beyond the prices, it is the very structure of the global monetary system that vacillates. And if, faced with this disorder, the answer came from central banks or fiduciary currencies … but from an apolitical, unalterable and global active: Bitcoin?
Donald Trump wants a low dollar, the markets want a strong currency: what if it was Bitcoin?
The revival of a protectionist policy by the Trump administration, notably through the imposition of new customs tariffs in China, Canada and Mexico, has caused tremors to the financial markets.
However, this trade war is not at the origin of all evils, between risk of dedollarization, persistent inflation, and record public debt, the world has entered a period of systemic monetary fragility.
Many economists fear a major financial crisis in the next 5 years, linked in particular to the debt bubble and to structural inflation.
In this context, Jeff Park, responsible for alpha strategies at Bitwise, explains that a generalized increase in inflation and a loss of confidence in fiduciary currencies will encourage investors and individuals to look for alternatives, with bitcoin on the front line.
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This is the only thing you need to make about tariffs to understand bitcoin for 2025. This is undoubtedly my Highest Conviction Macro Trade for the Year: Plaza Accord 2.0 is Coming.
Bookmark this and revisit as the Financial War Unravels Sending Bitcoin Violently Higher. pic.twitter.com/wxmb36yyyo
– Jeff Park (@dgt10011) FEBRUARY 2, 2025
Indeed, most modern financial crises find their source in an artificial intervention by state financial institutions: superabundance of liquidity, artificially low artificially interest rate, unbearable public and private debt …
Faced with this problem, Bitcoin presents itself as a hard currency, with a mathematical discipline which allows it a certain immunity against political arbitrariness. As Jeff Park explains, during a crisis it is natural to turn to non -diluable assets.
In this period of economic war, the imposition of new customs tariffs by Donald Trump aims to intentionally weaken the US dollar to make American exports more competitive, according to Jeff Park.
The dollar, thanks to its hegemony, is therefore used as an economic lever in this war, as it was used as a geopolitical pressure instrument against Russia and Iran for example.
The Bitcoin value proposition is therefore in its apolitical character, it is a resilient system, without risk of counterpart. The BTC is a neutral financial infrastructure, which in times of crisis becomes confiscation insurance, the asset freezing or the collapse of the payment system as was the case in Ukraine in 2022 for example.
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In a world of weak currencies, Bitcoin becomes a refuge
Despite these saving characteristics, in the short term, Bitcoin can behave like an asset at risk due to its volatility and its correlation to the traditional system.
But as Vijay Boyapati explains in his book ” An optimistic scenario for Bitcoin », It is not a fatality but rather a logical evolution of a currency. Currently according to modern terminology, Bitcoin is at the second stage of its evolution, that of the value reserve.
As was the case for gold, volatility is a normal step for an asset to first become a means of exchange, then to finish a unit of account. Today bitcoin is ready to become a form of cross -border, elusive digital gold.
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Bitcoin is not coverage against the volatility of the financial markets, but insurance against the ultimate risk: sovereign risk. The Bitcoin value proposal is not to replace the global financial system, but rather to abstract from it.
Bitcoin therefore does not avoid crises but offers a safety net, an alternative preventing the risk of systemic amplification.
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Source: @DGT10011
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Investments in cryptocurrencies are risky. There is no guaranteed high yield, a product with high performance potential implies a high risk. This risk taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital
Cyber enthusiastic forever, I have fueled my curiosity and my passion over time … should it have been the opposite? Maximalist convinced, I could have been part of the cypherpunks if I was born a few years before. Convinced that information and knowledge are the ultimate weapons of freedom, I brandish my pen like a sword, defending this noble cause with fervor. Don't believe me, check 🐰
