US-China-Brexit Economic Cost – Gold Bitcoin as alternative Investments
Nikolas Stylianou
Gold & Bitcoin alternative investments
The consecutives tensions on the Middle East with Iran and United stated the last few days motivated digital currencies investors to buy crypto currencies as we saw the Bitcoin rose up the last week and reached almost the level of 8100$. Investors tried to observe for alternatives investment such as gold and cryptos and if you take into consideration that crypto exchanges never close, this could be a huge advantage for major players in the market because they will take their position over the weekend awaiting from the rest market to react and be ready to succeed. Bitcoin and rest of cryptocurrencies do not get influenced from instances such as political and economic developments, either interest rates decisions or inflations because no banks get involved and that is the reason that the digital market is driven by investors who try to find opportunities to purchase on cryptocurrencies. The same applies to gold where people can purchase this valuable commodity, when the whole market affected by geopolitical instabilities wars and tensions around the world. Noteworthy is the fact that gold almost jumped $70 dollar per ounce to the upside after the recent tensions began on the Middle East and as a result oil demand has been generated.
US-China New Initiative
New circle of initiatives was proposed by United States for the trade war, as an effort to achieve a strategic cooperation with Beijing. According to Financial Times announcement the new effort from US expected to start from Steven Mnuchin, one of the directors of the US Treasury Department and Liu He, the vice president of China and they will move separately from the rest of the trade talks between the two largest economies on the planet. During the upcoming week, they will proceed by signing of a preliminary agreement for temporary cease of the trade war among them. In addition, the phase 1 as it is called of de-escalation aims to suspend additional duties, as Beijing has accepted to proceed with some massive purchases of American agricultural and other products. However, this is not the end of the road, but these are important developments that will judge the future between both sides.
The economic cost of Brexit
According to Bloomberg the economic cost of Brexit of the British economy reaches 170 billion dollars and by the end of 2020 when Brexit will finally get done the cost will exceed almost 260 billion dollars. Significant premise for fulfilling this desire is to offset the cost of Brexit, which has plagued the British economy since the 2016 referendum until the period we are going through. The country has begun it’s exit from the European Union, however the uncertainty that prevailed from the referendum of 2016 was harmful for the economy. Noteworthy is the fact that Brexit deal process driven the whole investments in a gradual decline that is estimated around 11% since 2016. Furthermore, the productivity has also fallen from 5% to 2% over the same period. Christine Lagarde, president of the European Central Bank said that the biggest test of Brexit will begin in February when Britain and Brussels will proceed to negotiations to reach a trade agreement. The impact of Brexit on the Eurozone economy will be judged by the details of this agreement as long as agreement can be reached in the short term.
