In a recent video posted by popular cryptocurrency YouTuber, CryptosRUs, gave a comprehensive analysis of current economic events in the U.S. and their potential implications on the crypto market.
US debt ceiling and economic uncertainty
A pressing issue in the U.S. is the stalemate over the debt ceiling, a legal limit to the amount of money the federal government can borrow to cover its existing obligations.
CryptoRUs warns that failure to increase this limit could lead to a potential catastrophe, as it might result in a default for the first time in U.S. history.
Federal Reserve chairman Jerome Powell and Treasury secretary Janet Yellen have already highlighted the disastrous implications of such a default, potentially leaving the U.S. unable to fulfill obligations such as social security, Medicare, and debt repayment.
President Biden has asserted that he won’t support a deal that seemingly shelters wealthy tax evaders, including crypto traders, while compromising vital welfare programs like food assistance.
Simultaneously, concerns are raised regarding the trillions of dollars that have been printed and will need to be printed to service debt.
CryptoRUs raises the possibility of the U.S. dollar undergoing inflation and hyperinflation similar to situations witnessed in Argentina and Turkey, both of which suffered severe economic downturns due to mismanagement and overprinting of money.
The role of bitcoin
Despite the economic uncertainty, bitcoin (BTC) has managed to maintain relative stability over the past week. This is leading wealthy individuals like Robert Kiyosaki and Ray Dalio to consider it as a protective measure against potential catastrophic events, such as the hypothetical demise of the U.S. dollar.
According to CryptosRUs, current projections suggest that bitcoin may continue to follow a similar pattern to its 2015-2018 cycle, potentially indicating growth extending into 2025.
Furthermore, a decrease in the reserves of bitcoin and ethereum (ETH) on exchanges has been noted, which might imply increasing demand. There is a marked uptick in ethereum deposited and frequently burnt, leading to it being currently more deflationary than bitcoin and its lost coins.
However, CryptoRUs observes that there is still enthusiasm around meme coins, non-fungible tokens (NFTs), and BRC 20 on bitcoin, with interest also spilling over to dogecoin and litecoin.
CryptoRUs also shared insights on crypto storage solutions and expressed his preference for Ledger over other hardware wallets despite the recent controversies. Moreover, he highlighted a forthcoming video and encouraged viewers to watch his discussion on Ripple (XRP).