November 28, 2023

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“US $1 Trillion Debt Will Boost Bitcoin”

“US $1 Trillion Debt Will Boost Bitcoin”

Key facts:
  • Dalio sees an “emergency” situation due to the huge amount of money being pumped into the economy.

  • According to Mallers, Bitcoin will be worth hundreds of thousands of dollars amid increased issuance of banknotes.

Influential billionaire Ray Dalio, founder of investment firm Bridgewater Associates, has predicted an impending debt crisis in the United States, which, according to specialists such as Jack Mallers, will have implications for Bitcoin (BTC).

As Dalio reported in A interview November 17 TV The United States will face a crisis as long as it continues to borrow faster than their income grows, which increases the issuance of dollars to cope with the situation. He warned that this reflects an “emerging emergency.”

Currently the debt that the country has is $33.7 billion. This comes after recording a deficit of $1.7 trillion last year due to maintaining higher fiscal spending than it can afford. At the same time, the Federal Reserve raised interest rates to curb inflation.

Dalio noted that this combination of factors exacerbates the impending debt crisis. “The worse things get, the more likely we are to have this problem in the long term,” he said.

The billionaire stressed the need for the government to address the situation to avoid harmful economic and social consequences. However, he doubts that the Fed will adjust its aggressive monetary policy.

“I don’t think there will be any major change in Fed policy, except maybe a slight easing as the economy slows,” Dalio said.

A day after these comments, Jack Mallers, CEO of Bitcoin payments platform Strike, said in an article interview TV that The US debt crisis will boost demand for it Digital currency Hence its price.

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According to Mallers, Bitcoin will be worth hundreds of thousands of dollars

Mallers stressed that Bitcoin “will ultimately cost hundreds of thousands of dollars,” not only because of its innovative nature as a better form of money, but also because of the US government’s fiscal policies.

“Our government has tens of trillions of dollars in debt and it has to renew that debt, so they have a lot of money to print,” he said, noting that The price of Bitcoin will rise In this panorama.

In turn, Strike’s CEO pointed out that the issue of cash to cover financial spending has a direct impact on the value of the currency, which affects those who use it. “When they print money they don’t have, they’re stealing from all the people who have dollars,” he warned.

Meanwhile, Bitcoin has historically appreciated in value, among other factors, because it has a limited edition value that investors value.

At the time of writing, Bitcoin’s trading price is around $37,000. As reported by CriptoNoticias, the coin has been oscillating for two weeks in a maximum zone not seen in 18 months.