I see a lot of people talking about, and freaking out about the US defaulting on its debts. I’m here to let you know that there are really two outcomes here and both are bullish for crypto.
1 – The US fails to come to an agreement and defaults on its debts (not likely, we’ve been here before, it will pass but they need to put on some political theater first). If this were to happen, the world reserve currency, the USD, would get crushed. US credit ratings would also get crushed. There would be uncertainty about the USDs ability to remain the world reserve currency. As a result, crypto (mostly BTC) would go up. The BTC/USD exchange rate would see its denominator decline sharply resulting in a much high price for BTC, not to mention the increased demand for people seeking USD safe havens.
2 – the US comes to an agreement and raises its debt ceiling (most likely). In this case, the US will be free to spend more money it doesn’t have and artificial money creation will ensue.
Don’t get me wrong. This is bad news in general. But not for crypto. For crypto, this is bullish.