With all the unpredictability shadowing the Cryptocurrency sector for the past two months, Bitcoins has finally risen to 6.5% this week. Bitcoin’s hedge fund manager, Brian Kelly has asked the investors to put in all the money in Bitcoin as it is the only possible solution to combating trade war.
On Friday, Brian Kelly reported to CNBC that Bitcoin happens to be the new gold. Since this environment suggests of a new possibility of a trade war, he wants to invest in things which are deflationary and fix the sources in an inflationary environment. Bitcoin perfectly sets this example as it has remarkably geared up and initiated the process of gaining back it’s ruins.
Bitcoin has risen for 6.5% this week while gold prices have gone down to 0.7 percent. Bitcoin has been a potential market competitor always and has successfully gained back it’s lossses. During December, the bull run for Bitcoin which peaked at $19,500 suddenly halted and tumbled back down at $6000 this year. And in just about two months of time, it has attained a $11,000 mark and showed a noticeable stability .
The markets have been found to exceed expectations and is seeing better days now. President Trump had stated earlier this Thursday, that a 25% fee on steel and 10% on aluminum would be applicable from next week.
So what happens during a trade war?
According to Kelly, when trade wars happen, valuation of currency gets lower and the prices rise.
Kelly has 90% of his assets invested in cryptocurrencies and most of it in Bitcoins. He also stated that even a few years ago, investments in gold would outshine Bitcoins but now that Bitcoin has a fixed resource and it has turned itself to be a hard asset in a considerably less period of time, it stands to be an affirmation that it will surely do well in time of trade wars.