Ray Dalio and Jack Mallers highlight the looming debt crisis facing the United States.
Influential billionaire Ray Dalio, founder of the investment company Bridgewater Associates, has predicted an imminent debt crisis in the United States that, according to specialists such as Jack Mallers, will have implications for bitcoin (BTC).
According to Dalio in a television interview on November 17, the United States will face a crisis as long as it continues to go into debt faster than its income grows, increasing the issuance of dollars to cope with the situation. This reflects that “an emerging emergency is occurring,” he warned.
Currently the debt that the country has is 33.7 trillion dollars. This occurs after registering a deficit of 1.7 trillion dollars last year due to maintaining higher fiscal spending than it can afford. Meanwhile, the Federal Reserve (Fed) has raised interest rates to curb inflation.
Dalio pointed out that this combination of factors exacerbates the imminent debt crisis. “The worse that gets, the more we're going to have that long-term problem,” he said.
The billionaire highlighted the need for the government to address the situation to avoid detrimental economic and social consequences. However, he doubts that the Fed will modify its aggressive monetary policy.
“I don't think there will be any major change in Fed policy, other than maybe a slight easing as the economy slows,” Dalio said.
A day after these comments, Jack Mallers, the CEO of bitcoin payments platform Strike, noted in a television interview that the US debt crisis will drive demand for the digital currency and, consequently, its price.
According to Mallers, bitcoin will be worth hundreds of thousands of dollars.
Mallers emphasized that eventually bitcoin “is going to cost hundreds of thousands of dollars,” not only because of its innovative nature as a better form of money, but also because of the financial policies of the US government.
“Our government has a debt of tens of trillions of dollars and must renew that debt, so they have a lot of money to print,” he said, pointing out that the price of bitcoin will skyrocket in this scenario.
In turn, the CEO of Strike indicated that the monetary issue to cover fiscal spending has a direct impact on the value of the currency that affects those who use it. “When they print the money they lack, they are stealing from all the people who have dollars,” he warned.
Meanwhile, bitcoin has historically appreciated, among other factors, because it has a limited issuance that is valued by investors.
At the time of writing, bitcoin is trading around $37,000. As reported by CriptoNoticias, the currency has been lateralizing for two weeks in the area of its maximums not seen in 18 months
