How the U.S. Debt Ceiling Crisis Could Drive Up Demand for Crypto-Currency
The current debt ceiling crisis could be an interesting turn of events in favor of cryptocurrency. If Congress can’t negotiate a resolution and the US defaults on it’s debts, the country’s credit rating would get downgrades, triggering a recession, and roiling markets globally. (CNBC) On the other side of the world in China, yet another major property company is now saying it won’t be able to issue payments for bonds — a sign that a major financial crisis may be unfolding there which has the potential to spread globally. (Bloomberg)
Either way you look at it, the world’s two largest economies may be experiencing major financial challenges in the upcoming months. A global financial crisis combined with a significantly weakness dollar might lead countries that are pegged to the dollar look for an alternative, either their own currency, another country’s currency, or cryptocurrency. Major players like Russia and China will likely move towards their own currency, smaller players in their sphere of influence may peg to their currency, but the smaller countries around the world may opt in for crypto, taking the path of El Salvador. (Time, Reuters)
How would this play out? First, when the global financial crisis hits, crypto-speculators would likely liquidate their positions to drum up crash, causing…
