The ongoing tensions between the U.S. and China could boost crypto should certain events transpire, say certain investors.
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Ongoing China-US Tensions May Be Able to Boost Crypto: Dovey Wan & Others
President Trump announced that U.S. businesses can no longer transact with Tencent and ByteDance. Tencent is best known for WeChat and ByteDate is best known for TikTok.
Although it seems that this move was to pressure those two platforms, some think that the fundamental value of crypto is boosted if Trump next targets Chinese fintech firms. As Dovey Wan of Primitive Ventures said:
“If US banning payment providers like wechat pay, alipay etc and further manipulates SWIFT on banking wire relationship to impose political clout is the best adoption push for crypto usages worldwide. Cant be more bullish.”
This is a sentiment that has been echoed by Su Zhu, the CIO/CEO of crypto-centric hedge fund Three Arrows Capital. As reported by NewsBTC, when President Trump targeted Twitter for flagging his tweet, the investor wrote:
“With the recent politicization of facebook, google, and other bigtech social media giants, the web3 thesis for crypto has never been as underrated as it is now.”
with the recent politicization of facebook, google, and other bigtech social media giants, the web3 thesis for crypto has never been as underrated as it is now
— Su Zhu (@zhusu) May 29, 2020
Related Reading: Why Analyst Who Predicted Bitcoin’s 2018 Low Isn’t Bullish on Stellar (XLM)
Not the Only Macro Factor Boosting This Market
The growing politicization of technology companies isn’t the only macro factor boosting Bitcoin and the rest of crypto at the moment.
Analysts fear that with the ongoing macroeconomic situation, there is a serious chance of a breakdown in entire currencies and financial systems. Raoul Pal, the chief executive of Real Vision, touched on this in tweets and interviews. Pal has explained that there are serious risks in the fiat currency system largely due to debt.
Bitcoin and crypto assets, to him, are an escape from these issues:
“When I look ahead, all I see is the potential risk of the failure of our very system of money or less dramatically, out current financial architecture. Bitcoin is the call option in the future system.”
On a shorter-term, a discussion is