How Bitcoin Can Be The Saving Grace From A Global Trillion Dollar Global Debt Crisis
The global debt is continuously on the rise reaching $247 trillion while the financial assets market is looking at its impending crash. With the economies already in crisis, emerging markets are going to be affected even more. This is where Bitcoin comes to the rescue, having already started being adopted and used as a hedge against this crisis.
Since 2003, the global debt has been soaring. In the first quarter of 2018, this debt rose by $8 trillion including all the major countries and debt types comprising of consumer, business, and government. These debts need rising incomes in order to deflate but the ensuing trade wars only compress the incomes. The rising trade war at the world level especially between the US and China that is also affecting the connecting economies only make it harder to pay these debts off.
Emerging markets like Turkey, Brazil, Argentina, and South Africa are vulnerable to the risks. This is only giving rise to inflation which is further leading the Fed to raise the interest rate. Meanwhile, these countries along with others that suffering from the financial and economic crisis are turning to Bitcoin.
Can Bitcoin Help?
There have already been reports of an impending stock market crash by several experts an big names from the industry. When people lose faith in a currency, the typical reaction is to start using another currency. Traditionally, money has simply flung to the most stable currency and this has typically been the U.S. dollar. But bitcoin has a couple of advantages over old-fashioned cash.
First, it isn't controlled by a central authority. In countries where people are increasingly distrustful of how central banks and governments manage the economy, bitcoin might seem like a more sensible alternative.
The second advantage is that bitcoin can be easier to obtain than other fiat currencies. It can be bought and sold via bitcoin exchanges online, but also through indirect transactions via sites like LocalBitcoins.com.
Evidence suggests that people are increasingly looking to bitcoin as a viable alternative to their own beleaguered currencies during times of crisis. As the Greek crisis unfolded, bitcoin exchanges reported a healthy bump in volume as people traded the cryptocurrency around the world. The lion's share of the increase came from customers in Greece.
Just last month popular internet personality Kim Dotcom had urged investors to shift USD into Bitcoin before the impending global economic crash.