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

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UBS analysts expect Asia to be the only region that sees positive growth this year, and the return to strong earnings in the region could spark a renewed appetite for risk, and potentially, Bitcoin.UBS Analysts Expect Positive Growth in Asia, May Boost Bitcoin Buying in the RegionThe global economy is crumbling, and although markets are recovering across the board, few major stock indices have performed as well as the Nikkei, Hang Seng, and Shanghai composite.The fast rebound and positive momentum in the region have led to analysts from UBS Global Wealth Management forecasting that Asia will be the only region in the world this year to close with positive YTD earnings growth.Positive earnings growth leads to higher risk tolerance in investors. And with Chinese buyers driving most of the recent Bitcoin rallies, the added earnings and increased risk appetite could be a major boost for Bitcoin.Data shows that Chinese buyers aggressively bought Bitcoin’s plunge to under $4,000 on Black Thursday. Buying stayed steady for the days following, then fell off.Related Reading | Peaceful Protestor Recommends Buying Bitcoin On Live TV To Opt Out Of Failed Monetary System Later, when Bitcoin crashed, Chinese buyers were among the first to step up to buy the dip.Positive growth in Asia is on track to outpace the US. As the United States dollar struggles, the Chinese yuan and Japanese yen continue to pick up strength as well. If these currencies continue the trend, the dollar is at risk of losing its global reserve status.USD losing its leadership position also bodes well for Bitcoin.A stateless currency would offer balance and fairness to the global economy, and put an end to any nation gaining superpower status simply due to the growth of their currency.Failing US Dollar Leaves Room for Reserve Currency Battle Between BTC and Digital YuanWith the US dollar weakening and Chinese yuan becoming more powerful by the day, the next war for global reserve currency status is about to heat up.Throughout history, each major currency enjoyed roughly 100 years of dominance as the global reserve. The Dutch guilder fell out of power in the 1700s, and the pound sterling fell victim to the dollar in the 1900s.The United States is in turmoil, its monetary system out of control, yet the stock market is booming. This alone is a strong example of the wealth gaps that are driving the economic tension.All the while, the pandemic has hastened China’s development of the digital yuan.The recent lockdowns have pushed the adoption of digital payments, and more countries are considering developing a digital currency of their own on the same concept as Bitcoin, but with added control.The battle for the next global reserve currency may come down to Bitcoin and the digital yuan, and not the dollar at all.Related Reading | Bitcoin Rally Driven By Eager Chinese Buyers, Key Data ShowsThe two digital assets also could not be more in opposition in terms of goals. China’s new token will allow them to keep close tabs and further control citizens through their money.Bitcoin, on the other hand, was designed to put that control back into the possession of the individual.If China’s tight grasp of control extends further across the globe, it could be dangerous for democracy in general and not just the dollar. The country already strictly controls the media and even access to the internet. Its digital currency would be leveraged to bolster its reach.The best answer to avoiding that control is Bitcoin. The US may eventually develop a digital dollar of its own, but has thus far failed to do so.If the country ever does catch 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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