More Crypto Wealth to Come In the Next 10 YearsNovember 11, 2018
The rapidly growing debt level of the US, in turn, can lead to a notable spike in the price of Bitcoin and other currencies in the crypto space.
Erik Voorhees, the CEO of ShapeShift stated that cryptocurrencies are set to boom following the next major global financial crisis. He says that the high level of debt will cripple the economy if more money is not printed, which in turn will lead to increased cryptocurrency investment.
He states: “When the next global financial crisis would occur, the world will realize organizations with $20trillion in debt will not be able ever to pay it back.”
There will be a need to print more of fiat money, and this is a sign that the fiat is doomed. He implies we need to be watching what will happen to the crypto.
Even major financial institutions are worried about the current trend. The currency supply problem of fiat currency is a matter of worry. The interest rates are also getting way too high making it increasingly hard to sustain the economy with the current growth rates. The interest rate does not in any way match with its growth rate. The inflation rates are rising much above the target.
The debt ceiling of the US is continually increased by the US lawmakers, thereby making it possible for the federal government to take more in debt. This theory of the US debt level about the world economies is not sustainable, and he states that this will put the states under enormous pressure when there is a financial crash next time.
To help pay off money, it will be required for the government to print money to ease up the deficiency quantitatively. If a lot of money is in circulation, its worth will be less. And this means that ordinary families will be able to see that the value of their savings is decreasing in value.
Mr. Voorhees believes that people would want to increase the worth of their savings and ultimately they might resort to investing in cryptocurrencies. He further gets too diplomatic stating that the cryptocurrencies are as well a financial risk for investors owing to their volatility.
He reminded of how in the year 2017, the value of Bitcoin rocketed double its value, ultimately reaching its high at $19,783 in December 2017. He also recollected about how the profit plunged in 2018 to $6,000 in June 2018. He added that ever since the price decline the price has stabilized, and there are no significant increases or decreases in the price level of Bitcoin.
One of the experts has predicted that the next ten years are going to be exciting and that more crypto wealth will be created in the next ten years.