Over the next decade, the Congressional Budget Office predicts US government debt will rise to levels not seen since the 1940s. The irresponsible fiscal policy is another example of the current system’s shortcomings when compared to immutable crypto assets.
With the government forecast to spend $1 trillion more than it collects in taxes each year, the institution sees debt held by the public reaching 98 percent of GDP by 2030. Some believe such policies make widespread adoption of a global currency free from government manipulation an inevitability.
US Debt Growing by Trillions
According to a report in the Wall Street Journal, the US government is expected to spend $1.28 for every $1 it takes in taxes over the next year. The Congressional Budget Office (CBO) predicts that the deficit will be at its highest point since 1946 by the decade’s end.
The CBO bases its figures on current spending and levels of taxation. Congressional Republicans are keen to see individual tax cuts extended past 2025. President Trump will also reportedly include further cuts as part of his 2020 reelection campaign. This could mean the debt is actually much larger.
Meanwhile, an ageing population looks set to force increased Medicare and Social Security spending. The CBO Director Phillip Swagel commented on the growing US deficit:
“There’s not a crisis today… The longer we wait, the more difficult it gets.”
John H. Cochrane reasons in a 2011 article titled “Inflation and Debt” for National Affairsthat government debt spiralling out of control often leads to inflation. Growing inflation, as NewsBTC has reported on many times before, makes hard assets, like gold, Bitcoin, and some other crypto assets, appealing.
Cochrane writes:
“Inflation is a form of sovereign default. Paying off bonds with currency that is worth half as much as it used to be is like defaulting on half of the debt.”
Coinbase CEO: Crypto Set to Flip Fiat, Eventually
Coinbase CEO Brian Armstrong believes the irresponsible fiscal policy of the US and other nations will create demand for crypto. In the following Twitter thread he makes an argument for a forthcoming flipping of public opinion.
Consider crypto
"U.S. National Debt Will Rise to 98% of GDP by 2030, CBO Projects" https://t.co/PNniOjpZUV
— Brian Armstrong (@brian_armstrong) January 29, 2020
Armstrong acknowledges that most of the world’s population currently thinks of crypto as “funny money”. He believes a shift towards the view that it’s actually government money that’s the more ridiculous notion is coming. Armstrong thinks young people will be the driver of such a change.
He adds:
“Why put your livelihood into something that could be manipulated or devalued without your input.”
Related Reading: Craig Wright Knows Exactly Who Pumped Bitcoin SV by 350%
Featured Image from Shutterstock. The post appeared first on NewsBTC. origin »
Donald Trump floated using crypto to pay off the US' $35 trillion debt, part of his embrace of Bitcoin amid the 2024 race. Kamala Harris also pledged to boost "digital assets" signaling crypto's growing bipartisan appeal.
This Week in crypto revealed that US debt levels have soared, there is still much to be done about US crypto regulation, even as tokenisation efforts progress.
The post This Week in Crypto: Big US Debt, Solana Boss on Crypto Rules, and SWIFT Woes appeared first on BeInCrypto.
Many in and beyond the crypto industry believe that the political standoff around the debt ceiling increase makes digital assets more attractive in the long run.
Coinbase CEO Brian Armstrong has recommended crypto-assets, once again, as the solution to economic woes, debt-monetization, and other problems facing the global economy. Armstrong specifically referenced troubles with the repo market, making the point that younger investors are far more comfortable with natively digital crypto-assets, than older generations.
According to Coinbase’s latest report, Coinbase Earn launching the Dai Advanced Task resulted in users creating more CDPs (Collateralized Debt Positions) than ever. Coinbase Earn is a platform that allows users to earn cryptos while learning about them via educational videos and performing tasks.
On November 27, John P. Hussman, an American stock analyst and former Professor of Economics and International Finance at the University of Michigan, pointed out that society may be in the midst of a bubble as extreme as that seen in 1929.
Misir Mahmudov is the author and operations associate for a crypto hedge fund called Adaptive Capital. As the US dollar loses its real-world value, Bitcoin price models may become useless. Bitcoin arose as a result of a massive financial crisis, and it has become a growing industry since then.
BitoPro, a Taiwan bitcoin and cryptocurrency exchange, announced it is launching BitoDebt, a new regulatory compliant debt purchase platform – on November 26th, 2019 at 3 PM (UTC+8). The new service will provide users with new ways to manage their assets.
Ron Paul believes the mother of all government debt bubbles will cause a meltdown bigger than the 2008 financial crisis. The New York Fed is pumping billions into the repo market, reflating its out-of-control balance sheet.
In an effort to dig out the country from the deep hole of hyperinflation, sovereign debt and sanctions from other economies, President Nicolas Maduro, Venezuela’s leader, is set to implement an aggressive strategy focused on its national cryptocurrency – Petro.
iP2PGlobal Cryptocurrency Financing Platform aims to re-shape personal financing by introducing Sharia compliant financing products to individuals worldwide. Offering the first unsecured crypto financing product, the platform will also feature a single global benchmark rates for fair loan pricing, compensation fund to cover default risks, full KYC & AML compliance and proper e-lending legal documentation in order to enforce debt collectibility, furthermore financing & disbursement will be in US$ pegged stablecoins to encourage real world usage.
MakerDAO has been one of the most successful Ethereum-based crypto ecosystem, which was established with the motive of providing stability to the unstable cryptoverse. Gregory Di Prisco, the company’s Head of Business Development recently featured in an interview to reiterate his support for the technology.
The Morningstar Ratings Agency, one of the most dominant firms in the debt securities business, will take up the crypto sector and produce ratings for digital assets, reported Forbes. Morningstar’s influence stretches to millions of investors and thousands of financial advisors.
Bitcoin (BTC) is often described as “digital gold”, but it could soon be described as “digital bonds. ” New data suggest an interesting relationship developing between Bitcoin and the yields on government-issued debt.
Back at the end of the crypto hype bubble in 2017, altcoins like Ethereum, Litecoin, and Ripple, and even more obscure altcoins were all expected to be a revolutionary breakthrough in financial technology.
A new weekly record was set last week in global corporate bond sales, with investors grabbing hold of around $140 billion in new bonds according to data from Dealogic. This occurs against a backdrop of negative yielding debt, and the meteoric rise in popularity of stablecoins and exchange-native tokens across the crypto space.
If you have outstanding tax debt, the IRS may now want to take your passport. For U. S. crypto holders still waiting on promised IRS guidelines for filing — especially those overseas who may have missed these warning memos — the over 400,000 agency notifications issued since February last year are troubling.
Looks like Donald Trump has found another source of income. Users of the Brave browser can now reward content creators over Twitter, with tips dispensed in the Basic Attention Token (BAT). With nearly 63 million followers, the American President is only a few offensive tweets away from paying off the national debt.
Die-hard Ripple fanatics are going “balls deep” in debt to buy XRP, the cryptocurrency associated with Ripple. One Twitter user known as XRP PHOENIX said he’d taken a loan for “way more than [he] can afford to pay back” to fund his crypto purchases.
Claiming its LEO token sale only generated $100 million earlier this year, Bitfinex held another token sale, run by a crypto startup called Ampleforth, as the exchange continues to pay off an $850 million debt to its investors and Tether.
Bitfinex has reportedly forked over $100 million of a $700 million debt it owes stablecoin issuer Tether, leading some to believe the crypto exchange may have reached its LEO token sale goal of raising $1 billion.
MyEtherWallet (MEW) users will now be able to generate Dai straight from the interface, marking another important step for the platform as it expands its offering into decentralized finance. MEW users will be able to create collateralized debt obligations (CDPs) through a MakerDAO portal.
Margin lenders on Poloniex got hit with a 1,800 BTC ($13.5 million) loss on May 26th as a flash crash has made it unlikely borrowers will be able to repay the debt.
American crypto finance company BlockFi announced support for customers using Gemini USD (GUSD) as a substitute for fiat USD, on May 29, 2019. This move paves a path for non-U. S. residents to access the dollar-denominated debt market.
On May 9, 2019, the Financial Crimes Enforcement Network (FinCEN), issued new “interpretive guidance” about how its regulations apply to businesses that conduct money transmissions in virtual currencies.
What Is Fenixera? Based in Norway, Fenixera is a crypto accounting platform aimed at providing global entrepreneurs with the knowledge and experience needed when managing cryptocurrencies. Fenixera integrates reporting and tracking capabilities that protect the entrepreneurs from having to write off international debt.
Bitcoin Gold Ten years ago, the world experienced an unprecedented quantitative easing while also suffering from unmanageable debt levels. The crisis came to a head in 2017 as the federal reserve sought to reduce its $4.
“The United States Can Pay Any Debt It Has Because We Can Always Print Money To Do That. ” These are the exact words of former Federal Reserve Chairman Alan Greenspan from August 2011, a video that resurfaced online recently.
According to a report in Forbes, Chicago Mayor Rahm Emmanuel – formerly Chief of Staff for President Barack Obama – told one-time CCN writer Benjamin Pirus that the future for cryptocurrency is “affirmative.
As anxiety grows around every new twist and turn in the ongoing QuadrigaCX drama, along with extensive QuadrigaCX media coverage, Canada’s mainstream media has been calling on the government to bring in better oversight and regulation of cryptocurrency businesses, especially cryptocurrency exchanges.
MakerDao is one of the exciting projects of this year. While Maker (MKR) cryptocurrency has been hot crypto as it registered significant gains, about $2 million worth of Ethereum has been locked in Collateralized Debt position (CDP).
Coinbin, a South Korean crypto exchange, declared bankruptcy on February 22, 2019, citing foul play from inside the company. Business Korea reported on Coinbin’s recent failure, claiming that the company had lost $26 million as a result of theft and the subsequent bankruptcy declaration.
Now is the perfect time to buy bitcoin, according to Spencer Bogart, a partner at Blockchain Capital. Speaking to Bloomberg, Bogart was evangelical about bitcoin, calling it “the most compelling asset in the world right now.
Credit card debt in 2019 has reached an unparalleled high. Experts have gone ahead to posit that this is a pointer to an impending economic recession. Consequently, many people are wondering whether or not it’s a good idea for investors to continue buying Bitcoin with their credit cards. It’s also possible that crypto investors who […]
It’s not just the just United States debt reaching an all-time high, individual credit card debt is also breaking new records in 2019. With credit card debt mounting, and a potential economic recession looming on the horizon, should crypto investors really be buying Bitcoin with their credit cards? Those that have already loaded up on.
Global debt is growing at a very fast pace. It is currently approaching $244 trillion. Government debt has reached around 80% of the global GDP and private debt continues to grow as well, making things even worse.
CryptoNinjas
Fineqia, a service platform to support security issuances and administration of equity and debt today announced its subsidiary Fineqia Ltd has partnered with Nivaura to use its white-label capital markets platform to perform a fully.
Cryptocurrency–While most of the investment base for cryptocurrency continues to reel from 2018’s bear cycle, which saw Bitcoin fall over 60 percent and the altcoin market drop further, crypto lenders and those betting on debt have still managed to come ahead.
For those of us who have been looking at the crypto with much anxiety in 2018 should have some reassurance from the fact that people that have vested interest in equities markets also didn’t sleep too well.
It has been a long debate as to whether it is worth having a college degree or not. It was found from a recent report that was done by the World Bank despite the huge amounts of debt that is being accumulated by students, for every year you are able to put in education you […]
Crypto legend, and Bitcoin permabull, and venture capitalist Tim Draper is now holding programs to help entrepreneurs build crypto startups at the Draper University. It’s long been debatable whether it’s worth earning a traditional college degree or not.
In this series we look past 2020 to what the future holds for crypto beyond fiat-pegged stable coins and speculative prices to the original ethos of crypto and the cypherpunk movement - to redesign our economic, social, political and environmental structures .
The steep decline in Bitcoin price has coincided with record volume of the recently launched Bitcoin ETP on the SIX Swiss Stock Exchange, suggesting that institutional investors are may be buying the dip.
When the towers in New York fell, I became obsessed with economics. I wanted to follow the money to understand what happened on that dreadful day. During that time of inquiry, I found myself very interested in Austrian economic theory.
Bobby Kogan says the national debt is your fault. Kogan is the chief mathematician for the Senate Budget Committee. In other words, he’s the one helping Congress spend your money. Kogan pointed out on Twitter this week that full tax compliance would help balance the government’s spiraling national debt problem.
By CCN Markets: Donald Trump might not like bitcoin, but he's doing an excellent job creating the economic conditions in which the leading cryptocurrency can thrive. Need proof? Just look at the US national debt, which crossed the $22 trillion mark in February and has ballooned by nearly $400 billion more in the six months […]
The post HODL Bitcoin: Trump Signature Hikes National Debt by $1.7 Trillion appeared first on CCN Markets
America’s $22 trillion national debt is transforming the land of the free into a dystopian wasteland of citizens who are enslaved to bondholders. (Bond, as in debt instrument, is rooted in the word “bondage,” meaning slavery.
Today is a record moment in US history. The total national debt has surpassed $22 trillion for the first time ever. The runaway mountain of debt is a terrifying reminder of how fragile the fiat monetary system is.
