Hi Dino !
It was going to happen. It was just a matter of time: Botcoin causes a problem
Did cracking down in Bitcoin disrupted Supply Chain Financing?
"In terms of financial applications, supply chain finance accounted for 32.6% of applications following by trade finance and insurance with 11.2% each. Cross border payments represented 7.9% and asset securitization 6.7%."
https://www.ledgerinsights.com/china-financial-blockchain-supply-chain-finance/
What if, once China saw financial applications, supply chain finance, trade finance, insurance and cross border payments going into the Bitcoin domain it panicked?
What if once China cracked down on Bitcoin, it shoot itself -and the rest of the world- on the food by clogging the trade machine?
My take is that what we see overall int he global markets can be traced back to Supply Chain Financing.
The Chinese are quiet about and not many people talk about it.
Once there is no money to finance supply chains, trade gets to a halt.
The Covid story stopped trade. Once the smoke cleared, trade restarted and the world started restocking. The requirements for financing the supply chains skyrocketed and the system is not coping.
People tend to think that it is just a matter of paying a higher price for a given product, but if there is no supply chain financing, goods do not move from supplier to distributor and ultimately to the consumer.
As people also tend to look to simple causes, they look to containers, ships, warehousing, trucks and their drivers, harbors etc
But it is money -supply chain financing- that makes trade move. |
