TechFlow news, April 6 — According to Cointelegraph, Bitwise analyst Jeff Park believes that U.S. President Trump's trade policies could trigger global macroeconomic turmoil and short-term financial crises, but ultimately drive broader adoption of Bitcoin as a store-of-value asset.
Park argues that economic instability caused by trade wars will push governments to adopt inflationary fiscal and monetary policies, further devaluing fiat currencies and increasing global demand for alternative stores of value such as Bitcoin.
Although global financial markets may face short-term pain and wealth erosion due to trade wars, Park forecasts that rising demand for Bitcoin as a hedge against fiat currency depreciation will drive its price significantly higher in the long run.
Earlier on February 2, Park predicted the immediate impact of trade wars: "The cost of tariffs will likely be shared through higher inflation by the U.S. and its trading partners, but the impact on foreign nations will be relatively heavier. These countries will subsequently have to find ways to address their weakening growth."
