Recently, the news about money has been continuous. Gold, pound and US dollar volatility is making news regularly, frightening investors.
1. Trade War Affects Monetary Policy
This is a peaceful as well as conflicting world. US President has broken the global trade pattern and disrupted the economic layout, causing many countries to readjust their economic policies.
As a result of the Sino-US trade war, major import and export countries such as South Korea, Taiwan and Japan are the first to be affected. The huge import and export demand has been limited, which is detrimental to the economic imbalance.
Deutsche Bank was forced to carry out massive global layoffs. What is even more alarming is that its nearly 45 trillion US dollars of toxic assets are likely to drag down all the world’s top investment banks, which will then evolve into something like the 2008 financial tsunami.
Central banks of many countries are forced to show their “expertise” once again: cut interest rates. The central banks of South Korea, Indonesia and South Africa announced interest rate cuts this week to join the army of interest rate cuts. So far, at least 17 central banks around the world have cut interest rates across the board.
Economic development is getting weaker and weaker, which predicts that something is about to happen.
At this time, at the center of the crisis, the Federal Reserve and the European Central Bank appear relatively calm. In fact, it is more like the peace before the tsunami. It is because the two central banks that support the world’s largest economies have run out of money and their room for easy monetary is becoming smaller and smaller.
The European Central Bank has already said that it is very likely to take another quantitative easing to buy bonds. At the upcoming meeting, the Federal Reserve may discuss how much to cut interest rates, not when to start cutting interest rates.
A new round of monetary easing is coming viciously and a major global monetary storm is preparing at an accelerated pace.
2. Currency war may cause BTC to soar
The last currency war took place after the Financial Crisis in 2008. Under the leadership of the Federal Reserve, interest rates have been cut around the world and European countries have even started negative interest rates. Under such macro conditions, gold soared from US$ 800 to nearly US$ 1900, while silver soared from US$ 9 to over US$ 45.
However, unlike the last interest rate cut, the Federal Reserve had enough reserves last time, and this time the Federal Reserve has run out of reserves. The Federal Reserve is likely to be forced to open the negative interest rate mode in the ongoing currency war. In other words, the customer does not only have no interest but also has to pay the bank a “safekeeping fee”. The Federal Reserve will do its best in waterflooding of the economy.
Under such circumstances, all anti-risk assets such as gold and silver will rise sharply. Gold has now stabilized at US$ 1,400, while silver has rapidly risen to US$ 16.
As the pet of the new generation, digital currency has been recognized by most people and is likely to become one of the risk-resistant assets worth investing after gold and silver. In particular, the stability of BTC has been recognized by major investment institutions. From well-known reports such as Grayscale, we can infer that more and more investment institutions have begun to gradually accumulate BTC. If the currency war breaks out, digital currency like Bitcoin is bound to soar, even surpassing the peak of the last bull market.
3. CXC is steadily increasing its value and it may take advantage to reach its peak.
CXC is a recent hot public chain project. Since its launch on July 4, it has quickly occupied the headlines in the circle.
The core method of participation is benchmarking bitcoin and layered collision in proportion to bitcoin until the price of both parties is 1:1. Looking at CXC’s technological accumulation: Cross-chain technology, POA mining, atomic transaction, chain business ecology, deflation economic model, the new identity of the new generation of blockchain application incubation platform integrated with decentralized exchange+cloud disk+social networking, combined with its use of sharding technology to make TPS break through the core highlight of millions of levels, these technology accumulations and the extensive applications of CXC are sufficient to withstand the market test.
And if the atmosphere is as we expected, then bitcoin’s rise is bound to drive the rise of CXC, which may rise to its peak and become the biggest dark horse in the public chain!