The likelihood of a sharp rise in the cost of cryptocurrency increases significantly due to the ongoing US economic policy. In this opinion, several experts agree at once. So, Erik Voorhees, the head of ShapeShift, considers the imminent financial crisis inevitable. This says the head of the fund, which manages $ 6.317 trillion.
The modern financial system is built on the dominance of the dollar, but this cannot last forever. The US national debt has exceeded $ 100% of GDP, and its maintenance in the current environment is an overwhelming burden. Already, the yield of government bonds exceeded 3%. As the Federal Reserve System rate increases, it will increase even more.
This means that the States will have to find an additional $ 1 trillion to balance the federal budget. However, amid growing inflation, it is becoming increasingly difficult. As a result, the authorities will be forced to turn on the printing press. The consequences of such a move will not be immediately apparent, but they will be catastrophic.
Once investors feel the danger, they will get rid of the dollar. According to Erik Voorhees, the onset of the global financial crisis in the coming years is inevitable. And then other, still undervalued assets will take the stage.
It turned out that now there are only two types of financial instruments with limited liquidity. This is gold and cryptocurrency. In this regard, it is not worthwhile to consider shares of the stock market, since during a crisis the business begins to experience serious difficulties.
Of course, not all cryptocurrencies will be in demand. However, now there is a list of coins that have proven their ability to serve as a value equivalent. First of all, it is Bitcoin. It already exists in a large part of investment portfolios.
Despite the fact that its price continues to be in a downtrend, investors are optimistic about the future of the asset. In case of the devaluation of the American dollar, cryptocurrency will take the place of the equivalent value of goods and services. And then the price will rise to the cosmic level. So, venture investment expert Tim Draper is confident that the price of one coin will rise to $ 250,000 by 2022.