Bitcoin isn’t the Bubble You Should be Concerned about, These Bubbles are 129x Bigger


  • America suffering from a student-loan debt crisis
  • The ballooning national debt to cause GDP growth to slow down further
  • Govt.’s solution to work in favor of Bitcoin

There is a lot of concern around the Bitcoin bubble from the mainstream media that arose with the leading cryptocurrency’s price in 2017.

Although that was the all-time high (ATH) of Bitcoin, it wasn’t the highest percentage of gains seen by the flagship cryptocurrency. As a matter of fact, the percentage of returns seen in 2017 was drastically reduced from the previous cycles’ returns.

Bitcoin had three such bull cycles in the past that took it to a new peak and now we are onto a new one. In Q2 of 2019, the Bitcoin price surged over 150 percent, which led some to call it an echo bubble.

But Bitcoin bubble isn’t which is a matter of concern, there are far more monstrous and severe bubbles in the economy. And Bitcoin bubble pales in comparison to them.

This interesting facet has been noticed and shared by crypto enthusiast Rhythm Trader, who points out how credit card debt, student loan debt, auto loan debt, mortgage debt, and a national debt that ranges in the trillion dollars, up to 129x of Bitcoin’s total market cap.

America Suffering From A Student-Loan Debt Crisis

The most concerning one are student loan debt which in 2019 is the highest ever. More than 44 million borrowers collectively owe $1.5 trillion in student loan debt in the US alone.

Doubled since the recession, America is suffering from a student-loan debt crisis. While wages increased 67% since 1970, college tuition increased at an even faster rate.

The situation is so grievous that over 3 million American aged 60 and older owe more than $86 billion in unpaid student loans, as per INSIDER's Kelly McLaughlin.

As many as 40% of borrowers could default on their student loans by 2023.

The Ballooning National Debt to Cause GDP Growth to Slow Down Further

The national debt also continues to rise and once President Trump signs the budget deal, passed by the House on Thursday and is expected to be approved by the states, $4.1 trillion will be added to it.

US GDP growth fell to 2.1% in the second quarter and CRFB estimates that the new budget deal will bring debt to 97% of GDP in 2029. The ballooning debt will only cause GDP growth to slow down further.

“The more we borrow, the more we have to count on capital from abroad, or else no capital at all to fund our investments and the slower growth is going to be over time. We’re already headed towards 2% growth on the current basis, and the higher our debt is, the lower that will be,”

said CRFB’s senior vice president Marc Goldwein.

Govt.’s solution To Work in Favor of Bitcoin

To top it all, the government's solution to every situation is either go for quantitative easing or to cut down on the rates which are not good for the economy, in the long term.

Central banks all over the world are already poised to cut down the rates and experts are calling out to find the currency or asset to storehold your wealth.

Gold is one while Bitcoin is another. Bitcoin bull Anthony Pompliano says these solutions of govt. will act as “rocket fuel” for the leading cryptocurrency.

“More stimulus from the ECB means more money available for investments across the board. All assets go up, including bitcoin. The only difference is that if/when things crash bitcoin can act as a hedge when other assets are falling,”

said Mati Greenspan, senior analyst at eToro.

Bitcoin (BTC) Live Price

1 BTC/USD =$48,422.9992 change ~ -2.63%

Coin Market Cap

$902.87 Billion

24 Hour Volume

$18.88 Billion

24 Hour VWAP

$47.95 K

24 Hour Change

$-1,273.23

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