The CEO of Lightning Network wallet Strike says the US government’s rapid debt accumulation will be the catalyst that sends Bitcoin (BTC) to greater heights.

In a new interview with Bloomberg Technology, Jack Mallers says the United States has no way of paying off its record-high $34.578 trillion debt.

According to Mallers, he sees the government eventually turning on the money printers and issuing more dollars to meet its financial obligations.

“Our government is in debt. Traditionally, if I owed you $20, I’d have two options. I’d, one, have to default on that… The other is I could pay it back. Those are classically the two options that anyone in debt has right.

Now, the government, because they centrally plan and control our currency, unfortunately has a third and that’s they can print more money, devalue the debt that they have and that they owe and allocate more capital to themselves so our government can’t default.

The US, the United States of America cannot default on debt. It would collapse the entire planet. We also cannot afford to pay it back… This is just 101 basics [of] how the world works. If we can’t default and we can’t pay it back, what’s the only option that they have to do no matter what they set and tell you at the Fed chair meetings and all of the economists?

They have to issue more dollars.”

With more dollars in the system, Mallers believes that the surplus of fiat currency will find its way into assets with a limited supply like BTC.

“And so if there’s going to be more pieces of green paper, you want them competing for the most fixed thing. There’s more dollars that are competing for a fixed amount of Bitcoin.

Yes, real estate is going to go up, too, because there’s more dollars competing for real estate. But they can make more real estate. They can find more gold. They can’t make any more Bitcoin.”

At time of writing, Bitcoin is trading for $70,301.

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The post Here’s Why Record-Level US Debt Will Propel Bitcoin to Greater Heights, According to Strike CEO Jack Mallers appeared first on Crypto News Australia.

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Filed under: Bitcoin - @ March 31, 2024 5:11 pm