Sounding the alarm in the heart of the global economy! The national debt of the United States has reached an unprecedented historic level, exceeding 37 trillion dollars. What is even more concerning is that nearly 25% of total tax revenues now only goes to servicing 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 the cryptocurrency markets?
Let’s analyze the potential scenarios.
Scenario One: Crypto as a "Lifeboat" 🛶
When confidence in traditional currencies and major economies shakes, 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 has been a safe haven in previous economic crises, Bitcoin is increasingly viewed as "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 weak dollar.
Stablecoins: Amid uncertainty, international investors may see stablecoins like USDT and USDC as a faster and more efficient means to protect their assets from local currency fluctuations, away from the traditional banking system.
Scenario Two: The storm that sinks all ships ⛈️?