Huge Debts May Lead To Crypto Boom-Good news for Crypto!! Some of the most prominent investors in the world think that crypto might take a boom in the upcoming years because of the increasing debts of the U.S.
Debt Of USA
CEO of Shapeshift, one of the better-known cryptocurrency exchanges in the world, thinks that because of the $21.7 Trillion debt of the U.S., cryptocurrency is going to get its boost. Talking about the issue, Erik Voorhees said “When the next global financial crisis occurs, and the world realizes organizations with $20 trillion in debt can’t possibly ever pay it back and thus must print it instead, and thus fiat is doomed. Watch what happens to crypto.”
Erik Voorhees went on to reveal why he believes there will be an increase in inflation and a reduction in the purchasing power of the dollar. He postulates that in order to repay the debt, the federal reserve will have to print more money, which will, in turn, cause the above effects.
Huge Debts May Lead To Crypto Boom-Major asset management firms and other financial firms have expressed their concern over the growing debts of the U.S. One of these financial giants is BlackRock , which has more than $6.3 Trillion assets under management. CEO of BlackRock Larry Fink stated that the budget deficit of the country is increasing rapidly and if it continues to be the same, the U.S. may have to borrow up to $1 Trillion every year going forward.
The economy is facing difficulties in sustaining itself against the rising inflation of the U.S. dollar and the increasing interest rates of the federal reserve. Adding to this, Larry Fink said: “That could be the real issue related to everything: where we have interest rates becoming too high to sustain the economy with its growth rates.”
Founder of Civic and partner of Multicoin Capital said that because of all the above issues, there will be more crypto assets created in the next ten years compared to that of the past ten years. He said “More wealth will be created in crypto over the next 10 years, than over the prior 10 years. But remember, like any success story, it’s not going to be a straight line up. Keep believing and just be patient.”