Quote from: squatter on November 12, 2018, 08:34:24 PM

Quote from: likeprotocol on November 12, 2018, 03:47:42 PM

ShapeShift CEO Erik Voorhees has said that the growing debt of the US, which hovers at around $21.7 trillion as of November, will inevitably cause a big spike in crypto.

When the next global financial crisis occurs, and the world realizes organizations with $20 trillion in debt cant possibly ever pay it back and thus must print it instead, and thus fiat is doomed. Watch what happens to crypto. Voorhees suggested that to repay the national debt, the government and the federal reserve will be forced to print more fiat money, leading to inflation and a decline in the purchasing power of the US dollar.

BlackRock, the worlds largest asset manager with more than $6.317 trillion in assets under management, is the latest major financial institution to express concerns regarding the rapidly increasing national debt of the US. The conglomerates CEO, Larry Fink, stated that the US government is heading towards a supply problem due to the countrys increasing budget deficit. Beginning next year, Fink noted that the US could be forced to borrow $1 trillion a year. The rising inflation rate of the US dollar, as shown by the growing interest rates of the Federal Reserve, has become too high to sustain the economy. 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, BlackRock CEO Larry Fink said.

It's interesting to see Fink compared to Voorhees here. I'm guessing Fink doesn't agree that the looming national debt will cause a cryptocurrency boom. It wasn't long ago that he said BlackRock's clients have zero interest in it.

I think it's pretty unpredictable what would happen in a real financial crisis. I don't share Voorhees's optimism.

I share the same opinion as you! When the financial crisis will become prominent, a country like US will start taking some steep measures to bring back the wealth to their treasury! Among many other techniques, increasing interest rate is certainly one of them. It is an effective technique often exercised by the central banks to fight inflation and bring back the wealth to fill the coffer of the country. As a result, the US citizens will end up paying more in their loan repayments commitments. The price of daily commodities will be increased to bridge the gap of revenue for the companies because the business loan interest will also go up. This way the country will start filling up their coffers from the public's pocket and the common people will be left with a limited resources in hand.

I am not optimistic that US financial crisis will lead to a crypto boom due to these reasons! When the common people will be left with limited resources, they will not have the power to invest in cryptos the way we are envisaging now. The demand may not increase to that level where we can experience big crypto boom. Even though I personally want it to happen because it will make me richer, but that may not be the case!