The alarm bell is ringing in the heart of the global economy! The national debt of the United States has reached an unprecedented historical level, exceeding 37 trillion dollars. What is even more concerning is that nearly 25% of total tax revenues is now only going to pay the interest on this massive debt.
This critical economic situation raises a fundamental question for every investor in our world today, especially in the crypto community: How will this affect cryptocurrency markets?
Let us analyze the potential scenarios.
Scenario One: Crypto as a "Lifeboat" 🛶
When confidence in traditional currencies and major economies wavers, investors have historically sought alternative assets to preserve the value of their wealth. Here, the role of cryptocurrencies stands out:
Bitcoin (BTC) as Digital Gold: Just as gold was a safe haven in previous economic crises, Bitcoin is increasingly viewed as the "digital gold." With its limited supply of 21 million coins and its decentralized nature, investors may turn to it as a hedge against inflation and a weakening dollar.
Stablecoins: In times of uncertainty, international investors may see stablecoins like USDT and USDC as a faster and more efficient way to protect their assets from fluctuations in local currencies, away from the traditional banking system.
Scenario Two: The storm that sinks all ships ⛈️?