Important facts:
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Dalio sees an “emergency situation” due to the enormous cash injections into the economy.
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According to Mallers, BTC will be worth hundreds of thousands of dollars given the increasing issuance of banknotes.
Influential billionaire Ray Dalio, founder of investment firm Bridgewater Associates, has predicted an impending debt crisis in the United States, which experts like Jack Mallers say will impact Bitcoin (BTC).
As Dalio shared in one interview TV on November 17th The United States will be in crisis as long as it continues to borrow faster than their income grows, increasing the spending of dollars to deal with the situation. This reflects that “an emerging emergency is occurring,” he warned.
Currently the country’s debt is $33.7 billion. This comes after the country posted a $1.7 trillion deficit last year because it maintained higher government spending than it could afford. Meanwhile, the Federal Reserve (Fed) has raised interest rates to curb inflation.
Dalio pointed out that this combination of factors is exacerbating the looming debt crisis. “The worse it gets, the bigger we’re going to have this long-term problem,” he said.
The billionaire stressed that the government must address the situation to avoid harmful economic and social consequences. However, he doubts that the Fed will change its aggressive monetary policy.
“I don’t think there will be a major change in Fed policy, other than perhaps some slight easing as the economy slows,” Dalio said.
A day after these comments, Jack Mallers, the CEO of Bitcoin payment platform Strike, said in a interview TV that The US debt crisis will boost demand the digital currency and therefore also the price.
According to Mallers, Bitcoin will be worth hundreds of thousands of dollars
Mallers emphasized 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 financial policies.
“Our government has tens of trillions of dollars in debt and needs to renew that debt, so it needs to print a lot of money,” he said, noting this Bitcoin price will skyrocket in this panorama.
The CEO of Strike, in turn, pointed out that the question of currency to cover household expenses has a direct impact on the value of the currency, which affects those who use it. “If they print the money they don’t have, they’ll steal from all the people who have dollars,” he warned.
Meanwhile, Bitcoin has gained value in the past partly because there is a limited amount of output that investors value.
At the time of writing, Bitcoin is trading at around $37,000. As CriptoNoticias reports, the currency has been in a sideways movement for two weeks near its highs, which have not been reached in 18 months.