A simple understanding of the impact of politics on crypto
Since Trump returned to the political scene and started talking about imposing new tariffs on imports from countries like China, Canada, and Mexico... the markets have not been silent.
Amid all this chaos, Bitcoin was one of the first to be affected, and its price dropped temporarily to $91,200, before it balanced out a bit.
🎯 Why do customs duties affect crypto in the first place?
Customs duties increase the cost of imported products, which creates tension in the market and makes people avoid risks.
And when people are afraid, crypto conditions fluctuate, because not everyone considers digital currencies a safe place during crises.
But on the other hand, some people see that the dollar may weaken due to these policies, and this is where Bitcoin comes in as a safe haven or 'digital gold'.
⚙️ So what is their impact on miners?
It's not just investors who are affected, but also the miners (who work in Bitcoin mining).
Since most mining equipment is made in China or comes from countries with tariffs, importing it has become more expensive, making it harder for small miners.
This means that the fees may reduce the number of miners, and this affects the Bitcoin network as a whole.
📈 Is Bitcoin the solution in such crises?
Despite the shocks, there is a viewpoint that says Bitcoin could be a 'lifeline' when the world is floundering in the economy.
This means that instead of people holding onto dollars that are losing value, they might turn to Bitcoin as a means to preserve their money's value.
But of course, this requires awareness and knowledge of the market, not just impulse.
✅ Summary of the talk:
Trump's tariffs shifted the balance a bit and made the crypto market tremble.
But it also gave Bitcoin a chance to show that it could be a long-term alternative in difficult economic situations.
I mean...
🔸 If you are investing in crypto, keep up with the political news regularly
🔸 Don't act out of fear
🔸 Think strategically, not emotionally