Bitcoin to save countries from massive national debtApril 11, 2019
Bitcoin was never really a favorite of the traditional finance institutions like banks as well as governments, despite its futuristic potential. In fact, 2 years back when BTC started coming to the fore, governments and banks in various countries, were completely against it. But cut to 2019, they have realized Bitcoin is the “only solution” they have to survive and pay their massive debts.
Bitcoin had been through a bearish state last year but fortunately the BTC market has taken a bullish turn of late. In fact, famous Russian economist Vladislav Ginko has claimed that BTC will possibly top around a whooping 2 million USD by the final quarter of 2019. It is especially due to Russia’s increasingly involvement in Bitcoin lately.
“A major reason behind the rise of Bitcoin of late is increasing recognition from banks and governments who have now realized that crypto is the only way to resolve their debts”, stated Crypto expert Sydney Ifergan in one of his latest tweets. A veteran Crypto expert & advisor and the founder of top crypto news site The Currency Analytics, Mr. Ifergan surely knows a thing or two about the crypto world.
“From Japan to Greece to Lebanon, almost every major country in high debt is now banking on Bitcoin.”
Mr. Ifergan’s tweet comes with a list top 10 countries with highest public debt levels. Japan has topped the list while Greece, Lebanon and Venezuela are in the 2nd, 3rd and 4th position respectively.
So, why is it that Bitcoin is being deemed as the savior even by those that have been against it initially?
As per Mr. Ifergan, The answer lies in its “fixed supply” quotient and its “inflation-preventing” policy. Put simply, crypto seems to be a more stable option compared to regular fiat currency.
Being unable to repay their mammoth debts, governments will be printing more fiat currencies. It would abet inflation as well as decrease the value of fiat. If a currency reduces to lesser purchasing power, it would only head to hyperinflation as has happened with Venezuela. But Bitcoin will come as a savior here.
As BTC comes with fixed supply, it doesn’t allow centralized banking organizations to print it at their whims & fancy. Unlike regular fiat currencies, Bitcoin’s policies aren’t under the control of one single entity. In fact, the control rests on set of approvals cited on some decentralized ledger. This means Bitcoin is somewhat relieved from certain typical problems faced by fiat currencies like reduction in purchasing power & hyperinflation. Nobody here holds the absolute power to impart fees or taxes on transactions.
As a result Bitcoin seems to be comparatively safer and more stable than regular fiat and hence a wiser solution to get rid of debt burdens for countries in severe debt.