### **How Tariffs Could Affect Crypto**
1. **Bitcoin as a Hedge**
Historically, Bitcoin thrives in inflationary environments. If tariffs trigger price surges (e.g., on goods like electronics), demand for BTC as a store of value could rise—mirroring its performance during 2020–2021 stimulus policies.
2. **Geopolitical Tensions & Stablecoins**
Escalating U.S.-China trade wars might push businesses to use **stablecoins** (like USDT or USDC) for cross-border settlements, bypassing dollar-centric systems.
3. **Mining and Hardware Impacts**
China dominates crypto mining hardware production. Tariffs could raise equipment costs, squeezing miners’ profits and potentially decentralizing mining power further.
4. **Regulatory Reactions**
Politicians may tighten crypto regulations to control capital flows amid economic volatility, echoing past crackdowns during crises.
