Erik Voorhees, The Chief Executive Office of Shapeshift Wallet and Exchange says that the increasing debt of the US Government which is currently around $21.7 Trillion will certainly cause cryptocurrency to rise sharply.
“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 cryptocurrency.”
According to Eric Voorhees, the government will be forced to print the excessive amount of currency to repay the debt and thus this will surely lead to a hyperinflation eventually leading to the fall of USD.
BlackRock Investment Management Company which is the world’s largest asset management firm expressed its concerns in relation to the fast-growing debt of the US government.
BlackRock Chief Executive Officer Larry Fink expressed his concern stating that:
“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.”
A large number of financial economists predict that a major financial crisis is going to occur in 2020 because of the rapidly increasing interest rates of the US Federal Reserve and that this will surely lead to a rapid decrease in the value of USD. Economists believe that in such a state the people are likely to invest in assets such as gold and cryptocurrency that are independent of the global economy.
As ten years have passed from the day bitcoin came into existence, Vinny Lingham the CEO of Civic Blockchain expressed that the next ten years will be more wealth generating than the previous ones.
What do you think about the upcoming predicted financial crisis and how do you think cryptocurrency will play a major role in tackling the same? Tell us in the comments section below.