Bitcoin in the Trade War: A New Weapon in Global Economic Competition?
Jakarta, Pintu News – At the Token2049 conference, experts discussed the dynamics of the trade war between the United States and China, as well as the potential role of Bitcoin as a strategic asset in maintaining the country’s economic strength.
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US-China Trade War Outlook
Zoltan Pozsar, founder and CEO of Ex Uno Plures, revealed that China is currently in a similar position to the United States during the Great Depression. China’s economy relies heavily on export earnings to service its ever-increasing debt.
The tariffs imposed by Trump hit China where it is weakest as it restricts exports. Pozsar believes that these tariffs will hurt China more than Western consumers. When prices rise, consumers tend to buy fewer goods to save money.
On the other hand, China’s options to address this economic pressure, such as encouraging domestic consumption, go against the Communist Party’s ideological framework. This makes the crisis even more difficult to overcome. However, Pozsar concludes that both countries have changed their strategies.
The United States is starting to act like China by using stimulus to fund industrial projects, while China is gradually shifting to the Western model by applying monetary policy directly to consumers.
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The Strategic Role of Bitcoin
With the United States already holding about 1% of the world’s Bitcoin (BTC) supply, Dan Morehead, founder and managing partner at Pantera Capital, stated that the rational move would be to continue increasing the nation’s Bitcoin (BTC) reserves, similar to how the United States has long held gold as a reserve asset.
Following the United States’ landmark move to establish a national Bitcoin (BTC) reserve, Morehead predicts the emergence of a strategic divide among countries, with other nations competing to develop their own national Bitcoin (BTC) reserves.
This is particularly applicable to countries allied with or threatened by the US-led financial system.
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China and Russia on the Bitcoin Map
Although countries like China remain anti-crypto despite having $18 trillion of Bitcoin (BTC) seized, they may be encouraged to adopt Bitcoin (BTC) reserves if it means gaining an edge over the United States.
A recent report from VanEck revealed that China and Russia have completed certain energy transactions using Bitcoin (BTC) in a bid to move away from the United States dollar-dominated financial system.
This represents a significant strategic shift in global financial dynamics, highlighting the importance of Bitcoin (BTC) as a tool for international transactions.
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Reference:
- Crypto News. U.S. vs China: How Bitcoin Factors into the Trade Wars. Accessed on May 2, 2025
- Featured Image: Generated by Ai
