The founder of Cardano (ADA) has spoken out strongly about the state of the global economy. In a recent livestream, Charles Hoskinson called the global financial system downright fraudulent. According to him, governments and banks are piling up debts without a solution.
Hoskinson: Global debt heading ‘towards 500 trillion’
According to Charles Hoskinson, the current financial system functions like a Ponzi scheme. Instead of paying off debt or creating real economic value, the system is kept afloat by taking on more and more new debt.
“The global debt level now stands at $338 trillion,” he warned. “And that’s growing towards 500 trillion billion. That’s an astronomical amount that no one can ever repay. We’re heading for a global collapse.”
What is a Ponzi scheme?
A Ponzi scheme is a fraudulent construction in which old debts or returns are paid with new money from new participants. The name comes from Charles Ponzi, a con man who deceived investors in the 1920s with unsustainable profit promises.
The United States alone has a massive debt of almost $38.5 trillion. That debt continues to rise, partly due to the relatively high interest rates. The US pays close to 1 trillion dollars in interest every year, depending on the moment of measurement. That amount is used exclusively to pay the interest, without repaying the debt itself.
Bitcoin as an escape route
Many experts have long pointed out that crypto can offer a way out of the faltering financial system. That idea forms the basis of Bitcoin (BTC), which was designed by Satoshi Nakamoto precisely for this reason. Bitcoin is a digital form of scarcity. It cannot be printed and is often seen as the digital equivalent of gold.
Robert Kiyosaki, author of the bestseller Rich Dad Poor Dad, has been critical of governments’ financial policies for years. He recently warned again that the interest rate cut by the US central bank marks the start of a new round of money creation, something he calls “The Big Print”. According to Kiyosaki, this policy will lead to hyperinflation.
As protection, he recommends investing in “real assets” such as gold, Bitcoin and especially silver. For the latter, he predicts a price increase to $200 per ounce in 2026.
Last hope for ADA?
Meanwhile, Hoskinson’s digital currency itself is performing particularly weakly. At the time of writing, the ADA price is around $0.37, not far from the low of around $0.24 reached during the previous bear market in 2023.
According to analyst Sssebi, a bullish divergence on the RSI is currently the last hope for Cardano. In a recent post on
The RSI (Relative Strength Index) measures the momentum of price movements and helps identify overbought or oversold conditions. Such a divergence is often seen as an early sign of a possible trend reversal.
Source: https://newsbit.nl/charles-hoskinson-globale-financiele-systeem-is-een-ponzi-scheme/
