In response to the imposed US sanctions China is preparing to strike back, and there’s a good chance that he could start with the collapse of the US bond market, writes Forbes.
If China starts to sell existing Treasury bonds of US $1.1 trillion, the country’s leadership will have to choose other options for investing of the money.
Now that the US is preparing to impose new sanctions against China, Bitcoin may become a new means of storing values, suggests Forbes. Since the beginning of trade wars, many Chinese investors have begun to hedge their risks by investing in cryptocurrency. Now the scale rally of Bitcoins will depend on whether the Chinese government to rid of us Treasury bonds by selling them back to the Issuer. For a very long time, U.S. Treasury bonds served as a means of storing value, but after the appearance of uncertainty relations between the two countries, based on increased trade war, we can expect decisive action.
Will Beijing to invest in Bitcoins?
China still kept Treasury notes United States worth more than $1 trillion to contain a similar geopolitical problems and have the leverage to control policy United States dollar. However, if a trade war will come to a new level, the Chinese government may start to sell them.
Founder of the Agency Yewno, Ruggiero Grammar says:
“Bitcoin as a store of value can win from the sale of U.S. Treasury bonds”.
If China going to sell Treasury bonds, by presenting them to the government of the United States, he will be more than a trillion free dollars, you will need to invest somewhere.
On the second place in popularity are the bonds of Japan and Germany, investment is less profitable.
However, at present, the investment of the funds in Bitcoin by the Chinese government is extremely unlikely due to the current ban on cryptocurrencies and the General negative attitude of the Chinese authorities. Although lately, the cryptocurrency becomes accepted means of conservation values among the world’s institutional investors, the likelihood that the Chinese government decides to invest in BTC is extremely low.
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