The record growth of bitcoin and other cryptocurrencies is a bad sign for the dollar. Forbes magazine writes about this.
The publication reports on the "death spiral" of the US currency due to the growth of the US national debt, which, according to Bank of America, increases by one trillion every hundred days (now it is 34 trillion).
This increases concerns about the onset of a financial crisis in the United States and forces investors to transfer assets to cryptocurrencies, Forbes believes.
As a reminder, yesterday the bitcoin rate exceeded $65 thousand per coin. Now the entire volume of this cryptocurrency is estimated at a trillion dollars.
Bank of America believes that if the US national debt continues to grow at the same rate as now, the cryptocurrency rate will rise even more. The value of gold is also rising, another asset that investors are fleeing to.
The publication writes that the growth of investment in crypto has increased sharply over the past two weeks, and if this continues, bitcoin could "steal the golden crown" as "the world's main savings."
The magazine quoted economist Nassim Taleb as saying that the US economy is in a "death spiral." And it will continue "as long as Congress continues to increase the debt limit and make deals because it is afraid of the consequences of doing the right thing."
By the right actions, economists mean cutting US budget spending, the high level of which provokes a "death spiral" for the dollar.
Joao Gomez, a professor of finance at the Wharton School of Business, warned that the growing US debt could plunge the US into a financial crisis next year.
"Frankly, it could derail the next administration," Gomez told Fortune magazine. - "If they (the US government) come up with plans for a major tax cut or other major fiscal stimulus, the markets could revolt, interest rates could immediately skyrocket, and we could be in a crisis in 2025. This may well happen. I am very confident in this. By the end of the decade, one way or another, we will be there (in a crisis)."
