Record US Debt to Drive Bitcoin Price Higher, Says Strike CEO

John Darbie
Photo: Finoracle.net

Bitcoin's Path to New Heights Amidst US Debt Concerns

In a recent interview with Bloomberg Technology, Jack Mallers, CEO of the Lightning Network wallet Strike, voiced his concerns over the US government's record-high debt, which currently stands at $34.578 trillion. Mallers cautioned that the government's growing financial obligations could be a key driver propelling Bitcoin (BTC) to unprecedented levels.

According to Mallers, the fundamental issue lies in the US's inability to repay its massive debt, leaving the nation with limited options. "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, the United States of America 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.”

With an increase in the money supply, Mallers believes that this surplus of fiat currency will inevitably flow into scarce assets like BTC. "And so if there’s going to be more pieces of green paper, you want them competing for the most fixed thing. There’s more dollars that are competing for a fixed amount of Bitcoin. Yes, real estate is going to go up, too, because there’s more dollars competing for real estate. But they can make more real estate. They can find more gold. They can’t make any more Bitcoin."

At the time of this article, Bitcoin is trading at $70,301, reflecting the digital currency's growing appeal amid concerns over fiat currency devaluation and financial instability.

This perspective sheds light on the intricate relationship between governmental fiscal policies and the valuation of digital currencies. As the US grapples with its debt and explores avenues to manage its financial obligations, the outcome could significantly influence the trajectory of Bitcoin and potentially other cryptocurrencies.

Analyst comment

Positive news.

As an analyst, the market is likely to see an increase in demand for Bitcoin and other scarce assets as investors seek alternatives to fiat currency amidst US debt concerns. This could drive the valuation of Bitcoin to new heights and potentially impact the trajectory of other cryptocurrencies.

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John Darbie is a seasoned cryptocurrency analyst and writer with over 10 years of experience in the blockchain and digital assets industry. A graduate of MIT with a degree in Computer Science and Engineering, John specializes in blockchain technology, cryptocurrency markets, and decentralized finance (DeFi). His insights have been featured in leading publications such as CoinDesk, CryptoSlate, and Bitcoin Magazine. John’s articles are renowned for their thorough research, clear explanations, and practical insights, making them a reliable source of information for readers interested in cryptocurrency. He actively follows industry trends and developments, regularly participating in blockchain conferences and webinars. With a strong reputation for expertise, authoritativeness, and trustworthiness, John Darbie continues to provide high-quality content that helps individuals and businesses navigate the evolving world of digital assets.