Jack Mallers, the Strike CEO, has highlighted how the enormous $34.578 trillion debt held by the US government could lead to significant growth in Bitcoin (BTC). Mallers spoke with ED Ludlow of Bloomberg Technology about how fiscal policies might favour cryptocurrencies in the future.
According to the Strike CEO of the Lightning Network wallet strike, one of the main reasons why Bitcoin is rising could be the government’s mounting debt. Mallers explains that the government has three options when it faces a massive financial crisis: it can either default on the debt, pay it off, or print more money. The third and most likely course is to increase the money supply to lower the value of debt. This is alarming.
“Our government is in debt. Traditionally, if I owed you $20, I’d have two options. I’d, one, have to default on that… The other is I could pay it back. Those are classically the two options that anyone in debt has right … Now, the government, because they centrally plan and control our currency, unfortunately, has a third, and that’s they can print more money, devalue the debt that they have, and that they owe and allocate more capital to themselves so our government can’t default …
“The US cannot default on debt. It would collapse the entire planet. We also cannot afford to pay it back… This is just 101 basics [of] how the world works. If we can’t default and we can’t pay it back, what’s the only option that they have to do no matter what they set and tell you at the Fed chair meetings and all of the economists? They have to issue more dollars.“
Strike CEO Predicts
The strike CEO predicts that with the generation of more money, it will go toward assets like Bitcoin that have a limited supply. As opposed to gold or real estate, the supply of this token remains fixed at 21 million coins. In an environment where fiat money abounds, its value proposition is reinforced by the concept of scarcity.
He also discusses the possible impact of this cryptocurrency approaching halving event on the market, which is set to occur around April 20. During the halving, the reward for mining new Bitcoins decreases, leading to the creation of fewer BTC. If demand stays constant, this can result in a rise of its price.
Bitcoin’s Role in the Evolution of Crypto Payments
Source: Google
Strike CEO talks about the expanding field of cryptocurrency payments, highlighting the significance of stablecoins and the unique position that Bitcoin holds as a “ neutral value transfer protocol for the world”. Although the volatility of its price may deter regular users, particularly in underdeveloped nations,. Mallers believes that the technology behind this token may bridge the gap between decentralised finance and stable value.
