ShapeShift CEO Erik Voorhees has said cryptocurrencies will boom during the next global financial crisis. The finance expert at the global trading firm believes the high level of US debt will cripple the economy unless more money is printed. He argues this will lead to an increase in cryptocurrency investment.
He said: “When the next global financial crisis occurs, the world will realise organisations with $20trillion in debt can’t possibly ever pay it back.
“Thus must print it instead, and thus fiat is doomed.
“Watch what happens to crypto.”
US lawmakers keep increasing the country’s debt ceiling, allowing for the federal government to take on more and more debt.
His theory is the debt level of world economies is unsustainable and will put states under pressure the next time there is a financial crash.
As a result, he believes quantitive easing will have to come into force, the process whereby governments print money, to help pay off the money they owe.
The more money in circulation the less it is worth, meaning ordinary families could be set to see their savings decrease in value.
Mr Voorhees believes this in turn could lead to more people investing in cryptocurrencies.
However, digital currencies are also a financial risk for investors due to their history of extreme volatility.
In 2017, Bitcoin’s value rocketed to more than double its value, reaching a high $19,783 in December.
However, it then plunged in 2018 to a low of less than $6,000 in June.
Since then the online money has stabilised and has seen no major rises or falls in its value.
At the time of writing Bitcoin is worth $6,367.36