Meaning a tax imposed by the government on any product coming from abroad ✈️📦
The goal? They try to protect the local market and reduce competition from abroad 🛡️
But the result isn't always good... prices are rising 🔥 markets are getting tense 📉 and even the world of cryptocurrencies is affected 🤷🏻♀️ How? 👇🏻
How can tariffs affect the market? The impact varies depending on how and when the decision is implemented, but often:
Short term: Tension and fear in the financial sector... people are selling and distancing themselves from unstable assets ⚠️
Long term: The equation might flip... people will look for assets that preserve value, especially if the local currency is collapsing 💸
What’s the relationship between inflation and interest rates in this context?
When tariffs rise, prices increase = inflation ⬆️
Central banks respond by raising interest rates... meaning:
👈🏼 Borrowing becomes harder
👈🏼 And investment decreases
And here cryptocurrencies get a bit hurt... but what if inflation gets out of control?
People turn to cryptocurrencies to protect the value of their money 🪙
And the miners? What's their involvement? 🤔
Many mining devices come from countries like China 🇨🇳, and if they face high tariffs? Costs rise ↗️
Mining operations become harder
We might see a shift to cheaper and easier mining areas ⚙️
In summary?
Tariffs don't only affect goods... they move markets, create tension, and make people reassess 💬 and the world of cryptocurrencies... always reacts quickly to such changes 📈
Would you like a series explaining the impact of political and economic decisions on cryptocurrencies?
Respond to us and let’s continue with more real examples 😉👇🏻
