Surprising Positive Earnings Growth in Asia May Spark New Appetite For Bitcoin

UBS analysts expect Asia to be the only region to see positive growth this year, and the recovery of strong gains in the region could spark a renewed appetite for risk and possibly Bitcoin.

UBS analysts expect positive growth in Asia and may boost Bitcoin purchases in the region

The global economy is crumbling, and although markets are recovering across the board, few key equity indices have performed, as have the Nikkei, Hang Seng and Shanghai composite.

The rapid recovery and positive momentum in the region have led analysts to UBS Global Wealth Management forecasts that this year Asia will be the only region in the world with positive YTD earnings growth.

Positive earnings growth leads to higher risk tolerance among investors. And with Chinese buyers driving the most recent Bitcoin rallies, the extra earnings and increased risk appetite can be a big boost for Bitcoin.

Data shows that on Black Thursday, Chinese buyers aggressively bought Bitcoin’s plunge below $ 4,000. Buying remained stable for the next few days and then declined.

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Later, when Bitcoin crashed, Chinese buyers were among the first to buy the dip.

Positive growth in Asia is on track to outperform the US. As the US dollar struggles, the Chinese yuan and Japanese yen continue to gain strength. If these currencies continue the trend, the dollar risks losing its global reserve status.

USD losing its leading position also bodes well for Bitcoin.

A stateless currency would provide the global economy with balance and fairness, ending any superpower country simply by growing their currencies.

Failing US dollar leaves room for reserve currency battle between BTC and digital yuan

With the US dollar weakening and the Chinese yuan becoming stronger by the day, the next war is nearing the status of the global reserve currency.

Throughout history, every major currency has enjoyed about 100 years of dominance as the global reserve. The Dutch guilder fell from power in the 18th century and the British pound fell victim to the dollar in the 20th century.

The United States is in turmoil, its monetary system is out of control, but the stock market is booming. This alone is a strong example of the wealth gaps that cause economic tension.

All the while, the pandemic has accelerated the development of the digital yuan in China.

The recent lockdowns have boosted the acceptance of digital payments and more countries are considering developing their own digital currencies using the same concept as Bitcoin, but with extra control.

The battle for the next global reserve currency can come down to Bitcoin and the digital yuan, and not the dollar at all.

Related Reading | Bitcoin Rally driven by enthusiastic Chinese buyers shows important data

The two digital assets could also no longer be in opposition in terms of targets. China’s new token allows them to keep a close watch and further monitor citizens with their money.

Bitcoin, on the other hand, was designed to restore that control to the individual.

If China’s tight grip on control extends around the world, it could be dangerous to democracy in general and not just the dollar. The country is already strictly controlling the media and even internet access. The digital currency would be used to increase the reach.

The best answer to avoid that check is Bitcoin. The US may eventually develop its own digital dollar, but so far has failed.

If the country ever catches up to the rest of the world in terms of technology, it may be too late and Bitcoin and the digital yuan may be the only currencies that matter on a global scale.

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