Tariffs, trade tensions can be positive for the adoption of Bitcoin (BTC) in the medium term: Grayscale
Tariffs and trading tensions can be positive for bitcoin (Btc) Adopting the medium term, asset manager Grayscale said in a research report Wednesday.
Higher tariffs result in stagflation – inert economic growth with inflation – which is negative for traditional possessions, but positive for poor goods such as gold, the report said.
Bitcoin is considered a difficult money, similar to digital gold, and is viewed as a modern value store, the report mentioned.
Cryptocurrencies appeared on Wednesday following President Donald Trump’s announcement 90-day pauses on tariffs For countries not yet retaliated against the US
“Trade tensions can put pressure on the US dollar demand for the US dollar, opening space for competing properties, including other fiat currencies, gold, and bitcoin,” Grayscale said.
The historic preceding suggests that the weakness of the dollar and above-average inflation may continue, and Bitcoin is likely to benefit from such a macro backdrop, the asset manager said.
“A rapid improvement of market structure, supported by changes in US government policy” can help expand the Bitcoin investor’s base, added the report.
Read more: The Trump administration wants a weaker dollar and that’s positive for Bitcoin: Bitwise
