Erik Voorhees Says $21 Trillion US Debt Will Lead To Crypto Boom
Erik Voorhees, ShapeShift CEO has said that the debt incurred by the United , which is at around $21.7 trillion as of November, will inevitably cause a Crypto boom.
He 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.”
Voorhees said the to make it possible to repay the national debt, the government and the federal reserve might be forced to print more fiat money, leading to inflation and a decline in the purchasing power of the US dollar.
The world’s largest asset manager, BlackRock, with more than $6.317 trillion in assets under management, is the latest major financial institution to express concerns regarding the rapidly increasing national debt of the US.
Larry Fink, the conglomerate’s CEO, stated that beginning next year the US could be forced to borrow $1 trillion a year.
The rising inflation rate of the US dollar, as shown by the growing interest rates of the Federal Reserve, has become too high to sustain the economy.
Fink 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, a professor at NYU Stern School said:
“Second, 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,”
If a financial crisis occurs by the end of 2020 as predicted by many economists, the US dollar could drop substantially in value making gold and cryptocurrrencies to worth more.