According to leading American economists, the US national debt will lead in 2020 to a depreciation of the dollar and a new financial crisis that could lead to the unprecedented popularity of the cryptocurrency.
CEO of the Swiss company ShapeShift trading scriptactive, Erik Voorhees, says that the growing debt of the United States, which by November 2018 amounted to nearly half of 21.7 trillion dollars, will inevitably lead to a large rise in popularity of cryptocurrency. He suggests that to pay off the national debt, the government and Federal reserve will be forced to print more money, leading to inflation and reduced purchasing power of the dollar:
“Fiat is doomed, because in the event of another financial crisis of the structure, with debt of 20 trillion dollars, will not be able to repay and be forced to simply print the money. Then will come the time for cryptocurrencies”
Recently their concern about the rapidly growing national debt of the United States expressed Larry Fink, the CEO of one of the world’s largest investment companies, BlackRock, which manages assets worth 6 137 trillion dollars and is perhaps the most important financial organization in the world. He said that the US government will soon be faced with the problem of providing loans for the growing deficit in the budget. Fink noted that beginning next year, the United States may be forced to take on the 1st trillion dollars a year.
In his opinion the growth of inflation of the dollar, as evidenced by growing interest rates the Federal reserve is too accelerated to support the economy of the United States:
“This is a real problem that can affect everyone: we are seeing that interest rates become too high to support the economy with its growth rate”
Concerns Finca divides a Professor at new York school of business and cryptocurrency snob, Nouriel Roubini. He as well as Fink notes that the country’s economy can not sustain growth due to steadily increasing interest rates.
“<...> because of the (economic) momentum has been badly adjusted by the time that the US economy is now seriously overheating, and the rate of inflation is above the target level. The Federal reserve will continue to raise rates from the current 2% to 3.5% by 2020, which will likely lead to an increase in Bank interest, and raising the issue of the dollar”
Roubini, like many other American economists, predicts that a possible financial crisis in 2020 will lead to a substantial decline in the value of the US dollar, forcing investors to turn their attention to gold and cryptocurrency assets whose value does not depend on the global economy. The company’s founder and Civic partner Multicoin Capital, Vinnie Lingham, believes that the next 10 years will become much more interesting for the cryptocurrency world than the previous one:
“In the next ten years will be based on kryptolite large amount of wealth. But remember, like any success story, this path will not be straight. Keep believing and just be patient” to Discuss the latest news and events on the Forum