Among his many campaign promises as a candidate for the US presidency, Donald Trump has also been promising to close the US markets for the Chinese goods, at least partially. That, according to him, will help restore American jobs that he accused China of stealing. If he ever lives up to his promises and actually does something to that tune, it will certainly cause further devaluation of Yuan, the national currency of China. But the Yuan devaluation seems to be one of the primary drivers behind the growth of Bitcoin for the last two years, along with the reward halving.
What are your opinions on the consequences of his economic policy in regard to Bitcoin and its price in the long term?
I think bitcoin is going to soar up during Trump president. After all Trump received bitcoin as donation during his campaign. Donald Trump has pledged to declare China a currency manipulator on day one of his presidency. During his campaign, he also repeatedly pledged to impose a 45% tariff on Chinese goods. His promises risk creating a trade war between the U.S. and China which could weaken the yuan and accelerate Chinese capital outflows. When the yuan falls, investors often turn to bitcoin.
But couldn't the Chinese revenge Trump by dropping Bitcoin price? I've heard different opinions on this, but it seems that Chinese miners are controlling a massive share of Bitcoin mining. On this account, they should have enough bitcoins on hand to affect the price, most likely enough to crash it. For example, if they decide to sell all their Bitcoin reserves at once.
bitcoin can really hurt China, because they are trying to control their exchange rates. even though there are many Chinese miners, they do not have an union or such, so they are not organized. when an crisis appears they will try to get away and keep their own money instead of fighting together.
That being said, if Trump delivers his promise to China, it will hurt CNY, and people might switch to bitcoin for safety, if the theres no policies stoping them.
also wondering how is the depreciation of CNY a driving force of btc rising in value, as fas as I know CNY depreciating helps blooms the Chinese economy, does not that mean less people there will use bitcoin?