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Will the 20 trillion USD debt mountain lead to a new Bitcoin boom?

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Erik Voorhees is the CEO of the crypto company ShapeShift. On Twitter, Voorhees recently commented on the future of cryptocurrencies. He referred to the national debt of the United States, which is currently over 21.7 trillion USD.
Voorhees said US national debt would lead to a big boom in cryptocurrencies. He said:

“When the next global financial crisis comes, the world will realize that you can not repay $ 20 trillion but have to print new money. Then Fiat [money] is lost. Pay attention to what happens with cryptocurrencies. “

By that he meant that the US government could never repay the debt in the event of a fall. Rather, the Fed of the US must always generate new Fiat money, which leads to inflation, from which investors would then flee in cryptocurrency.

Big financial institution worried

The US company BlackRock is the world’s largest asset manager and manages more than $ 6.3 trillion. At the same time, BlackRock has recently expressed concern over the rapidly rising US government debt. Conglomerate CEO Laurence Fink said the US government is facing a “replenishment problem” due to the country’s growing budget deficit. Fink said the country could be forced to borrow $ 1 trillion a year from next year.

Further, Fink said that the rising US dollar inflation, reflected in the US Federal Reserve’s rising interest rates, may become too high for the economy. He explained:

“That could be the real problem with which everything is related: when we have interest rates that are too high to support the economy with its growth rates.”

US economist Nouriel Roubini shared Fink’s opinion. He also emphasized that the interest rate has reached a level where the US economy can no longer compete with its growth.

Many US economists believe that it could come to an economic crisis by the end of 2020. The reason for this is the high interest rates of the US Federal Reserve. The US dollar would then probably fall in value so that the investors took refuge in gold or cryptocurrencies.

The next 10 years will be interesting

Vinny Lingham is the founder of start-up Civic and Partner at Multicoin Capital. Lingham expects more assets to be created in the crypto area over the next ten years than in the decade before. The various market corrections would not change that. He said:

“In the next ten years, more assets will be created in the crypto sector than in the previous ten years. But you have to keep in mind: Like every success story, it does not go up in a straight line. Have faith and patience. “

Sources: Twitter, US Debt Clock, Yahoo Finance, Pixabay

Author: Peter Joost – Source Post: https://www.kryptovergleich.org/fuehrt-der-20-trilliarden-usd-schuldenberg-zu-neem-bitcoin-boom/

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