There are talks among US politicians and economists about the country defaulting on its national debt. Congress usually approves raising the debt ceiling, so I don't see what's the issue here. But if somehow the US defaults, how would the crypto market react? Positively or negatively? The USD is the reserve currency of the world, so it's likely everything (stocks, crypto, etc) will crash alongside it.
What do you think? Is a US default good or bad for crypto in the short term? Your input will be greatly appreciated. Thank you.
What do you think? Is a US default good or bad for crypto in the short term? Your input will be greatly appreciated. Thank you.
The US default would probably have a short term positive impact over crypto, because of the panic in the fiat financial markets many investors might turn towards crypto as an alternative. On the other hand, a US default might cause a new Great Depression worldwide and I'm not sure how the cryptocurrency markets would react to a big recession or depression. The prices of all financial assets might start going down.
The US dollar was the number 1 global reserve currency 20-30 years ago. Nowadays, the usage of US dollars as a reserve currency will drop more and more, which is something normal. The BRICS countries have grown a lot over the last 20 years and they will create their own reserve currency.