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The U.S. Treasury Secretary, Janet Yellen, has recently warned of the catastrophic consequences the U.S. could face if the country hits the debt ceiling without lifting it.
In his recent video CryptosRUs explains that failure to do so could lead to bankruptcy and an unprecedented financial crisis.
Despite this, there is growing opposition to raising the debt ceiling due to concerns about rising inflation and irresponsible money printing in recent years.
As the Federal Open Market Committee (FOMC) meeting approaches, Fed Chair Jerome Powell faces the difficult decision of whether to lift interest rates or let inflation continue to rise.
The U.S. government is on track to raise the debt ceiling again, as they continue to overspend by $1-2 trillion per year. This overspending has led to either borrowing or printing money, ultimately causing cash devaluation through inflation.
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Inflation is known to be favorable for assets like real estate, stocks, and bitcoin (BTC), but harmful to cash savings.
According to the YouTuber, if the U.S. defaults on its debt, it could trigger a 70% increase in bitcoin value overnight, as people turn to decentralized assets instead of government-controlled banks.
Bitcoin, which was created as a response to distrust in governments and banks, is now seen by some as a better option amidst growing economic uncertainty.
In other cryptocurrency news, liquid staking is becoming increasingly popular, driving the growth of altcoins and making them more deflationary as more holders choose to stake their coins.
Meanwhile, the craze for meme coins like pepe and wojack continues, with investors urged to exercise caution when investing in these volatile assets.
In a recent Q&A session, crypto YouTuber CryptosRUs also warned investors about the risks of investing in cryptocurrencies, comparing it to gambling in a lottery or roulette.
The YouTuber advised investors to withdraw their initial investments after making profits and to be cautious when investing in coins like pepe, which recently experienced an 83% increase in value.
CryptosRUs also criticized bitcoin sv (BSV), labeling it a “scamcoin” and arguing that bitcoin could achieve mass adoption through mass hodling, similar to gold.
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