The disruption of the interconnected systems built since the fall of the former Soviet Union in 1991 could lead to a return of fragmented trade routes and supply chains.
More recently, however, the trend appears to have reversed, prompting some pundits to predict a new era of deglobalization.
Global supply chains have been disrupted, exports have been choked off in some cases and now, due to the U.S.
“Russia’s invasion will have direct impacts on the global economy due to the contraction of Ukrainian and Russian exports, particularly energy, food, fertilizer and other commodities,” U.S.
On the one hand, higher consumer prices – or, flipped around, any increases represent a reduction in the dollar’s purchasing power – could strengthen bitcoin’s appeal because the cryptocurrency’s ultimate supply is fixed.
On the other hand, the Fed also might move to tamp down inflation by tightening monetary policy, which could crimp economic growth and put downward pressure on stock prices and, lately, bitcoin has been unusually correlated with stocks.
“How the price of bitcoin performs in an inflationary environment is untested,” said Garrick Hileman, blockchain technology researcher at London School of Economics and Political Science.
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