As economic uncertainties encircle the US and its consumers due to the coronavirus outbreak and plunging stocks, former Coinbase chief technology officer Balaji Srinivasan believes that the US government will have to resort to a historic and ambitious scale of printing money to pay off these debts. With a staggering 895,200 Twitter followers, his comments have created some traction among the crypto-community.

The current scenario acts as a case of déjà vu as the Federal Reserve increases the rates over the past year and devalues the US dollar. This has now posed a dilemma for the banking and insurance sector with “safe’ assets like banks, commercial real estates, and bonds no longer invincible. In particular, insurance agents have to heavily consider their portfolios as bonds account for more than 70% of the funds.

Srinivasan warns people not to trust the state and is optimistic about cryptocurrencies with a price hike for Bitcoin (BTC) surging to one million dollars in merely 90 days due to the banking meltdown. Even though the crypto-community has witnessed much speculation regarding this million-dollar prediction, it has created some excitements among crypto-traders as they are looking at newer, innovative ways of investing.

This is not the first time when the state’s sound economic track-record has gone for a toss. If history is to be taken into consideration, then economic crises do bring tremendous pain to the government and citizens in the short-term. However, it is also worth noting that such financial distress can be strategically used to re-strengthen the broken systems.

It is clear that the current crypto-maniacs have their attentions directed towards this space and think of cryptocurrencies as the saviour. While we cannot assert the same, we definitely cannot deny the essentiality and impact of emerging breakthroughs. To this, Srinivasan adds that people should be strategic and wise with their investments and to not trust the state.



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