Erik Voorhees, CEO of ShapeShift, said the United States' growing debt, hovering at $21.7 trillion as of November, will cause a huge surge in interest in the cryptocurrency. The CEO suggested that the government, as well as the Federal Reserve, is forced to print fiat money to pay off the national debt, and this inevitably leads to inflation and a weakening of the national currency.
The world's largest asset manager, with more than $6.177 trillion in funds under its control, BlackRock is among financial institutions raising concerns about US fiscal policy and its rapidly growing debt. The conglomerate's CEO, Larry Fink, is confident that next year will be even more difficult for the US economy and will be marked by serious budget deficit problems. To solve the problems, the country will be forced to borrow another $1 trillion a year, Fink notes, which will increase the already high level of dollar inflation, which can no longer support the national economy.
Professor of economics, Nuriel Rubini, a well-known crypto-critic and skeptic towards crypto assets, also shares this opinion. He emphasized that the federal funds rate had skyrocketed to the point where it was no longer comparable to the rate of growth of the national economy. In his practice, he has already predicted major financial crises, and now predicts a new one in less than two years.
If the experts' forecasts are correct, then excessively high interest rates set by the Federal Reserve will lead to a significant drop in the dollar. In this case, investors will begin to look for an alternative to the devalued fiat currency in gold and crypto assets, since they are not dependent on the global economy. This will undoubtedly lead to increased demand for cryptocurrency.
Civic founder Vinnie Lingham says that more capital will be created in cryptocurrency in ten years than in previous years. This, in his opinion, will happen despite the large adjustments that the crypto market is facing and will face in the future.
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