According to a recent Forbes report, concerns over the potential collapse of the U.S. dollar have accelerated, prompting a surge in cryptocurrency prices. The report highlights legendary billionaire investor Ray Dalio’s warning about the U.S. debt reaching an “inflection point” at $33.7 trillion, which some researchers consider a bullish case for Bitcoin.
The report highlights that cryptocurrencies like Bitcoin, Ethereum, and XRP, have experienced significant price surges amid growing fears of global wartime inflation in the United States. Bitcoin is currently trading above $37,000, Ethereum at $2005, and XRP at $0.6124.
Read Also: A Forbes Report Says XRP, Bitcoin, and Ethereum Are Close to a Potential 300% Price Rally
This surge has been attributed to factors such as the world’s largest asset manager, BlackRock, unleashing what has been termed a nuclear winter.
Dalio’s Comments
Per the report, Dalio, the founder of Bridgewater Associates, the world’s largest hedge fund, expressed concerns about the escalating U.S. debt, emphasizing the need for increased spending leading to a debt pile that accelerates. This acceleration, according to Dalio, creates a supply-demand problem, exacerbated by internal political and social conflicts.
The U.S. national debt surpassed $33 trillion in September 2022, driven by spending intensified by the Covid crisis and subsequent economic lockdowns.
Bitcoin analyst Will Clemente highlighted Dalio’s remarks as a bullish case for Bitcoin, pointing out the inevitable need for the government to continually issue more debt to cover previous debt payments, akin to an individual taking on new credit to pay off old debts.
The Federal Reserve has responded to the inflation threat with a series of rapid interest rate hikes, reaching levels not seen since the 2008 global financial crisis.
However, projections indicate that interest costs on the national debt could triple from under $400 billion in the previous year to almost $1.2 trillion in 2032, leading to increased borrowing to cover higher interest expenses.
Read Also: Forbes: Bitcoin, Ethereum and XRP Surge Is Set To Ignite Massive $300 Billion Price Earthquake
Could Bitcoin Become an Alternative to the U.S. Dollar?
Billionaire and notable crypto enthusiast Elon Musk and analysts from Jefferies have voiced concerns that the soaring U.S. debt could push the Federal Reserve into a debt death spiral, potentially triggering a collapse of the U.S. dollar. This spiral could fuel a Bitcoin surge, positioning it as an alternative investment comparable to gold.
As the U.S. grapples with economic challenges and the specter of a collapsing dollar, cryptocurrency markets continue to attract attention as potential hedges against traditional financial uncertainties. With the upcoming Bitcoin halving, the historical surges that follow these events could also improve investor confidence in Bitcoin and the crypto market.
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