ShapeShift CEO Erik Voorhees has said that the growing debt of the US, which hovers at around $21.7 trillion as of November, will inevitably cause a big spike in crypto.
“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 suggested that to repay the national debt, the government and the federal reserve will be forced to print more fiat money, leading to inflation and a decline in the purchasing power of the US dollar.
Major Financial Institutions Including BlackRock Worried
BlackRock, the world’s largest asset manager 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.
The conglomerate’s CEO, Larry Fink, stated that the US government is heading towards a supply problem due to the country’s increasing budget deficit. Beginning next year, Fink noted that 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.
“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,” BlackRock CEO Larry Fink said.
US Debt Clock | Source: National Debt Clocks
Nouriel Roubini, a professor at NYU Stern School and a cryptocurrency skeptic,