The worldwide economy is closely monitoring the situation in theย Unitedย States regarding theย capacity boost of the debt ceiling as the country faces the looming likelihoodย of default.ย
The implications of such a default continue to be speculated, with numerous sectors, including digitalย currencies, projected to be influenced.
Interestingly, thoughtsย on theย capacity impact on the industry remain divided. Reportsย by Blockchain.com CEO Peter Smith, a default would negatively impact the cryptocurrency space in the short term, keepingย inย mindย that this scenario, along with the threat of a fall, would be detrimental to digital assets, he said during Bloombergโs Qatar Economic Forum on May 25.
Nonetheless, taking a longstanding perspective, Smith expressed a more optimistic view.
He suggested that a default could atย theย beginning trigger a pullback in the cryptocurrencyย market but would soonerย orย thereafter lead to an upward surge.ย
โA Unitedย States default or a Unitedย States fall are probably bad for cryptocurrency. Because theyโre a danger investment, and people want to take danger off, I think on a long horizon. Theyโre probably good for cryptocurrency. So one of the strongest price moves that weโve seen this year was when Unitedย States banks started failing. I think if the Unitedย States Government defaults, weโll probably see a quick pullback and then a strong push upward in the cryptocurrency market,โ he said.ย
Possible solution on the debt ceilingย
Simultaneously, the executive pointedย outย that thereย is a high probability that a solution will be found to raise the debt ceiling. He believes a solution will be accordingย to the perception of theย present state of Unitedย States politics, which describes as highly entrenched.
On the other hand, Geoff Kendrick, Head of FX Research at Standard Chartered, sees a possible default as a positive element for Bitcoinย (BTC) (BTC).ย
Accordingย to Finbold, Kendrick thinksย that if the debt ceiling is not raised by the estimated deadline of July and a default occurs, Bitcoinย (BTC) couldย accomplish nearly $50,000.
As negotiations regarding the debt ceiling continue, market commentators are seeingย as potential assets that mayย be a cushion in a crisis.ย
1 notable voice is Robert Kiyosaki, the author of ourย trending personal finance book โRich Dad Poor Dad.โ Kiyosaki has stated the situation as โbad comedyโ and believes the Unitedย States is bankrupt. To safeguard against such a crisis, he recommends investing in assets such as gold, silver, and Bitcoin.
Disclaimer:ย The content on this site should not be considered financing advice. Investing is speculative. Andย once investing, your financialย resources is at risk.
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