A leading industry expert has claimed that spiralling levels of US debt will result in the rise of cryptocurrencies when the next global financial crisis is triggered.
Authorities across the Atlantic keep raising the United States’ debt ceiling, with current estimates putting the figure at around $21.7 trillion.
Erik Voorhees, CEO of global trading firm ShapeShift, predicts that the US will resort to quantative easing in hard times which will then drive investment in cryptocurrencies.
“When the next global financial crisis occurs, the world will realise organisations with $20 trillion debt can’t possibly ever pay it back. Therefore they must print it instead,” he said.
This would lessen the value of these traditional fiat currencies. “Thus fiat is doomed,” added Voorhees. “Watch then what happens to crypto.”
The two most valuable digital currencies, Bitcoin and Ethereum, have lost worth in recent days.
After reaching $6,535 and $220 respectively last week, they have fallen back to $6,382 and $211 at the time of writing.