It is no news that every cryptocurrency holder is patiently waiting for bitcoin to pull a major bullish rally before the year comes to an end. Based on recent statements from the CEO of ShapeShift Erik Voorhees, a bitcoin rally of this nature is likely to occur only with an increased debt for the U.S Treasury along with an economic meltdown.
CEO of ShapeShift Believes Higher U.S debt Equals Increase in Bitcoin Price
Voorhees believes that the higher the U.S. debt rises the higher the price of bitcoin. Voorhees is of the notion that once the debt profile of the country starts to increase exponentially, deep pocket investors in the country are likely to start storing all their money in cryptos to ensure its value is maintained. As a result of this, the price of bitcoin is going to rise high in response to the high demands for it.
Voorhees also made it known that at the emergence of another financial crisis, bitcoin is likely to have a major bull run. He made it known that once large organisation start finding it difficult to pay back their debt, the value of fiat will drop significantly and this will lead to a massive bull run for cryptocurrencies.
He made this known through a tweet. The tweet States that:
“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.”
Based on a recent report and analysis from investment firms across the world, it is clear that the global debt profile appears to be reaching unsustainable levels. As a result of this, there is a great deal of pressure on economies. Once this escalates to an uncontrollable level, an economic crisis becomes inevitable.
Case in Point
The ShapeShift CEO’s view can be confirmed through the recent actions of countries currently facing economic difficulties. In the case of Venezuela which is currently experiencing hyperinflation, the country has resorted to crypto as its last hope of getting out of the recession. The footstep is also been followed by other troubled countries like Iran, and Turkey.