In times of economic unrest, the demand for Bitcoins has always increased. After all, Bitcoin benefits when the national currency is devalued and the government starts working with its central bank. The aim is then to impose strict capital controls in order to restore financial stability.
Ashton Kutcher: Bitcoin is the best crypto trader protection against a trump nomination
As an independent currency, Bitcoin has become a popular asset class among conventional crypto trader investors in recent months. As the legendary Swiss investor Marc Faber explains, Bitcoin is the only currency among all asset classes, reserve currencies and commodities in the world that has recorded positive growth in 2015.
Control of Trump and Sanders
The United States presidential candidates, Donald Trump and Bernie Sanders, have already begun considering various financial reforms and proposing stricter rules for remittances to discourage foreign workers from sending US dollars to their home countries.
In 2015, Donald Trump announced that, as president, he would implement important financial reforms to stop the remittances of “illegal wages” from Mexican migrant workers to their home countries.
“Mexico must pay for the border and until it does, the United States will do the following: Seize all payments from illegal wages,” said Donald Trump.
Interestingly, the Bitcoin price rise correlates with the economic turmoil as described above
The introduction of such an aggressive proposal as Trump’s payment guidelines could seriously affect the Mexican economy and the value of its national currency. According to a publication by the Mexican central bank, in 2014 Mexican migrant workers in the US transferred over 23.6 billion US dollars to Mexico. Even though these remittances account for only 2% of economic output, the poorer areas of Mexico receive 10.5% of their income from these remittances.
“In 2010, Mexicans working in the US remitted over 22 billion to their families, or 2.1% of Mexican GDP. Although these remittances represent only a small portion of the Mexican economy, they are the third largest source of foreign exchange, after oil and exports, exceeding revenues from international tourism and foreign direct investment. In addition, these remittances account for 19.5% of income in the poorest rural regions of Mexico. The percentage is thus higher than that of state poverty reduction programs, such as funds from the Oportunidades program (10.2%) and the Procampo program (3.8%) for agricultural support,” says this study.