Increased Economic Protectionism: Threat or Opportunity for Bitcoin?

OROBTC

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Quote from: Hazir on October 11, 2016, 09:23:14 PM

Economic Protectionism is not a threat, certainly not for cryptocurrency. I am sure that at some point it will backfire and then everyone will turn their heads towards bitcoin.

We already see how negative interest rates is a threat banking systems in Japan and in Europe it is a dead end.

They won't induce growth, but will divert attention from reforms and as result current economic system will destabilize itself even further.

A diversion, yes that's right. Divert their attention: "Look over there, a squirrel!" And hide their machinations from the masses.

BTC still has a price that is too volatile to serve as a reliable Store of Value now. Perhaps when there are some real losses (real estate or stock market crashes), then BTC will get more attention.

And do not overlook that border-less world of Bitcoin either. Economic Protectionism usually signifies that things are very bad, the boot then comes down... BTC would be a way out.

Hazir

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★Nitrogensports.eu★

Economic Protectionism is not a threat, certainly not for cryptocurrency. I am sure that at some point it will backfire and then everyone will turn their heads towards bitcoin.

We already see how negative interest rates is a threat banking systems in Japan and in Europe it is a dead end.

They won't induce growth, but will divert attention from reforms and as result current economic system will destabilize itself even further.

Wind_FURY

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Quote from: pitham1 on October 11, 2016, 06:36:31 AM

Certain misguided politicians like Donald Trump think that protectionism is the solution to all their problems.
Unfortunately, history teaches us otherwise.

Trump is not misguided nor is he a politician. He's an entrepreneur and a businessman and in my opinion he is right about protectionist policies but only to a point. For the US domestic economy to be revived and be rejuvenated he needs to impose policies that would restrict imported goods and make policies to encourage for manufacturing done in the country.

The same with services. Companies should be discouraged from outsourcing jobs out of the US and start improving the educational system and make training programs so that those jobs would be given to the American people. It will not be easy and there are hurdles but it is not impossible.

Once America recovers and becomes great again, then Trump can open up the country's more competitive economy again to the rest of the world. China did this for hundreds of years, they were closed to the rest of the world then they opened up, look where it brought them.

HeroCat

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Global economy is too global, it does not affect BTC, because BTC market is small, if we compare to whole global fiat market. Even, for example, European or Asia market up or down can not affect BTC market. Wink

yayayo

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An interesting question. In my opinion, economic protectionism is much more an opportunity for Bitcoin than a threat. Even if states engage in capital controls and consequently fight Bitcoin, it's unlikely that they will be successful with it. All they can do is controlling the fiat conversion. But what if people are no longer interested in holding fiat debt money and do native Bitcoin transactions? The state will be pretty powerless to prevent this.

The worse the economy gets the more likely central banks will maintain and expand their irresponsible quantitative easing policy. By expanding the monetary base these banks are setting the stage for severe inflation of fiat money. When fiat money becomes worthless, people will be desperately seeking alternatives. Precious metals and Bitcoin are among the options to preserve the ordinary man's wealth.

ya.ya.yo!

pitham1

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Certain misguided politicians like Donald Trump think that protectionism is the solution to all their problems.
Unfortunately, history teaches us otherwise.

Wind_FURY

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If the slow down is really a sign of worse things to come then this would definitely an opportunity for Bitcoin. Not as a payment system but as a hedge and as a store of value. Before I was not convinced that Bitcoin was going to be very a long term instrument of investment. Now it looks like it is if you look at the all time chart and that we have not really seen how high it can go for the very long term.

Goms

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Economic growth plateaued because of unresolved debt issues, hence devaluation of fiat, people will adopt bitcoins because it has a lower devaluation rate.

outatime1

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I think there could always be an opportunity for bitcoin to be used as a method of payment much like paypal or credit cards. It can also serve as a way to send money around the world like western union. If these governments would see these potential uses and not fear that bitcoin will replace fiat, then it could succeed.

Chronobank

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Formerly known as Chronobank, now Chrono.tech

The slowdown in the global economy has resulted in many governments imposing protectionist measures in their countries. Could this pose a threat to Bitcoin?

Slowdown in World Trade Growth

Globalization and the corresponding increase in world trade has driven global GDP growth for the last couple of decades. Countries have found their niche areas in the global economy and have flourished – China in manufacturing, India in software, Philippines in Business Process Outsourcing, etc.

However, the rapid growth in global trade seems to be plateauing. According to a recent World Trade Organization report, the forecast trade growth rate for 2017 has been cut to 1.8% to 3.1% (from 3.7% previously). There is a possibility that global trade growth would be lower than global GDP growth (forecast of 2.2%)

https://cointelegraph.com/news/increased-economic-protectionism-threat-or-opportunity-for-bitcoin

Topic: Increased Economic Protectionism: Threat or Opportunity for Bitcoin? (Read 467 times)