фото показано с : blokt.com

The cryptocurrency sector might end up becoming the biggest winner should the next global financial crisis happen. Shapeshift CEO Erik Voorhees argues that with the high debt level of most governments, a crisis could force them to print more money which will decrease the values of their respective currencies. This could, in turn, make cryptos more attractive as an investment option.

Most crypto investors believe that it’s only a matter of time before the next crypto market rally happens. Experts say that the rally could be caused by a number of factors such as the increasing adoption of cryptocurrencies, the entry of institutional investors, or SEC’s approval of Bitcoin ETFs.

But there is a recent prediction that is even more surprising. ShiftShift CEO Erik Voorhees believes that the next financial crisis might actually result in the prices of Bitcoin and other cryptocurrencies skyrocketing.

In a tweet, Voorhees announced:

“When the next global financial crisis occurs, and the world realizes organizations with $20 trillion in debt can’t possibly ever pay it back, and thus must print it instead, and thus fiat is doomed… watch what happens to crypto.”

Based on Voorhees theory, the debt of most of the world’s economies has already ballooned to unsustainable levels. When the next global financial crisis happens, governments will be under a lot of pressure on how to pay off their enormous debts. The only way they could handle the situation in that scenario is to print more money to pay off their obligations.

Of course, everyone knows what printing more money could bring. With more money in circulation, it could actually decrease the value of that particular fiat currency. This puts the pressure on investors – they can‘t just watch idly as inflation eats up the value of their wealth.

That is where cryptocurrency could come in. Some investors and savers might opt to place a large chunk of their holdings in cryptos to counter the diminishing value of fiat, creating a crypto market rally in the process.

Are people willing to risk the volatility of cryptocurrencies just to escape fiat currency’s dwindling value? They may and, in fact, it has already happened in Venezuela. Faced with record-setting inflation at 13,860 percent, Venezuelans have been buying Bitcoin and other cryptos to preserve the value of their wealth.

Bitcoin, Other Cryptocurrencies Could Surge in the Next Financial Crisis Says ShapeShift CEO was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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