hile the national debt of the United States has soared close to almost $35 trillion, voices like that of the financial analyst Michael A. Gayed and the crypto advocate Erik Voorhees are calling for attention to the major consequences that could occur. Gayed established the threat of the soaring debt levels pointing out that it has surpassed both the tax revenue and inflation rates.
The Growing Debt Concern
Currently, the ratio of the US Debt and GDP has increased to dangerous levels. In 1960 the ratio was 52.65% and currently has increased to 122.33%, a major warning sign. Moreover the US debt is approaching $35 Trillion, with the current debt/citizen at approximately $103,568.The official federal budget deficit gets to $1. 8 trillion although estimates of the value of the actual existent market may be even worse and close to $2 trillion.
Voorhees' Warning: Bitcoin as a solution
Continuation of having national debt growing is inevitable and a threat that could lead to a bond market failure according to Erik Voorhees, the founder of ShapeShift. According to Voorhees, this problem is not limited to the current generation of political leaders and states that Bitcoin and decentralized assets can be quite useful to avoid the adverse results of such financial utopia.
Implications and Crypto's Role
According to Voorhees, the economic characteristics of Bitcoin could lead to the control of monetary inflation and slow the size of large nation-states, thus equilibrium the economy. This prospect in his mind that decentralized assets will continue to exist and progress in the future, can change the world economically and may lead to creating a better world.
Politics and the Future Outlook
That being said, Voorhees is optimistic regarding the prospect of cryptocurrency and illustrates how Trump and Vance can bring about circumstances for its development. This would deepen the cultural and economic characteristic of crypto which is expected to be useful through periods of financial change.
