ShapeShift CEO Expects Next Bitcoin Boom to be Result of Growing $21 Trillion US Debt Crisis
Erik Voorhees, the current CEO of ShapeShift, recently posted to Twitter about the unfortunate debt that the US continues to grow right now. Presently, it has already reached $21.7 trillion, which is terrible news for the US economy. However, in Voorhees’ opinion, it could lead to a major boost in the cryptocurrency industry.
The twitter post said,
“When the next global financial crisis occurs, and the world realizes organizations with $20 trillion in debt can’t possibly ever pay it back and thus must print it instead, and thus fiat is doomed. Watch what happens to crypto.”
He continued, adding that the only solution for the government will be to continue printing fiat money, which means that inflation and a loss of purchasing power would follow soon after.
One of the most recent financial institutions with concerns about the debt is BlackRock, which manages over $6.317 trillion. CEO Larry Fink commented that the US is driving themselves into a supply issue, adding that it could end up needing to borrow another $1 trillion. He said,
“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.”
Nouriel Roubini, an avid skeptic of anything related to cryptocurrency and a professor for NYU Stern School, seems to agree with Fink, adding that the economy simply can’t keep up with the growth of the debt. In his predictions for a major financial crisis in the next two years, he added,
“Because the stimulus was poorly timed, the US economy is now overheating, and inflation is rising above target. The US Federal Reserve will thus continue to raise the federal funds rate from its current 2% to at least 3.5% by 2020, and that will likely push up short- and long-term interest rates as well as the US dollar.”
With so many economists agreeing with this prediction, the value of the Dollar is bound to go down. As a reaction, some investors may start gravitating towards other stores of value, like gold and cryptocurrency, since they are not influenced directly by the economy.
Founder of Civic and partner at Multicoin Capital, Vinny Lingham, commented that additional wealth is expected over the next decade than what the last decade has seen. Continuing, he said,
“But remember, like any success story, it’s not going to be a straight line up. Keep believing and just be patient.”