The rising level of U.S. debt could see the price of Bitcoin rise. That’s according to the CEO of ShapeShift, who believes debt in America will cripple the economy.
Will People Turn to Bitcoin?
This is the opinion of Erik Voorhees, CEO of ShapeShift, a digital currency exchange. It is his belief that the crypto market will soon see a rise in interest during the next financial crisis.
In a report from the Express, Voorhees stated:
When the next global financial crisis occurs, the world will realise organisations with $20 trillion in debt can’t possibly ever pay it back. Thus must print it instead, and thus fiat is doomed. Watch what happens to crypto.
Voorhees goes on to say that in the next financial crisis, economies around the world won’t be able to cope. Consequently, they will have to print more money. However, with more money in circulation, the less it is worth, which, in turn, will impact the lives of billions.
In the long run, the ShapeShift CEO thinks that many will turn to investing in crypto such as Bitcoin. Yet, while they are one option for many, they also come with their own risks.
We only have to remember the bull run toward the end of 2017, which pushed Bitcoin’s price up to nearly $20,000, before it steadily fell during 2018. At the time of publishing, it’s worth $6,371, according to CoinMarketCap. At the same time, though, plenty of people still have confidence in where the crypto market is heading.
Not only that, but last month, it was reported that 25 percent of affluent millennials either use or hold crypto. A further 31 percent indicated they were thinking about it. With distrust of banks remaining, many are seeking out alternative options, one of which is the crypto industry.
Targeting Institutional Investors
Not only that, but companies are realizing the impact that the market is having. As a result, they are keen to maximize on this by providing retail and institutional investors crypto offerings.
Fidelity Investments is one such organization that is offering a crypto custody service for institutional investors interested in Bitcoin and Ether. Whereas, Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), has revealed that it is offering Bitcoin futures on the Bakkt platform.
According to a document published last month, this is expected to begin trading on the 12 December, 2018.
Do you think people will turn to crypto if there is another financial crisis? Let us know in the comments below.
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