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Falling Renminbi Serious Use Case for Bitcoin: DBS Chief Economist
A weakening Chinese Yuan (Renminbi) is helping to fuel the bullish sentiment of bitcoin, according to Taimur Baig of DBS’ Singapore unit.The chief economist Bitcoin is Up More than 200% in 2019 | Image Credits: TradingView.comBitcoin has been given a boost this year by a string of strong monetary policies. In addition to the US-China trade war, a dovish stance of the US Federal Reserve, as well as the European Central Bank’s plans of quantitative easing, is turning investors away from weakening national currencies.“Bitcoin as a hedge against runaway fiscal and monetary policy has – sort of – becoming the dominant paradigm,” Matt Hougan, global head of research at Bitwise Investment, told Barron’s. “I do think it is acting in that way.”HypeOn the other hand, some analysts believe bitcoin’s growing correlation with the mainstream financial markets is false-talk. Peter Schiff, CEO of Euro Pacific Capital, said last week that Chinese are not buying cryptocurrencies as a measure against a weakening market outlook. The American stockbroker added that the speculators were manipulating the bitcoin prices to fit the macroeconomic narrative.CNBC is trying its best to dupe its audience into buying Bitcoin. Despite gold being a much larger market, CNBC devotes far more airtime to Bitcoin. The Chinese aren’t buying Bitcoin as a safe haven. Speculators are buying, betting that the Chinese will buy it as a safe haven!— Peter Schiff (@PeterSchiff) August 5, 2019At press time, the bitcoin price is heading downwards below the $10,500 level after establishing its August high towards $12,325 on San Francisco-based Coinbase exchange. The move downward appeared amidst the Donald Trump government’s plans to delay imposing tariffs on some of the Chinese goods, including laptops, cellphones, and video game consoles.
Author: Davit Babayan
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