Jack Mallers, the CEO of Lightning Network company Strike, says the massive and rapidly growing US government debt is a catalyst for the Bitcoin price.
In a new interview with Bloomberg Technology, Mallers indicates that the US government has no chance of paying back the $34.5 trillion debt.
The inevitable money printer
Jack Mallers expects that the American government will eventually use the money printer to meet its financial obligations.
“Our government is in debt. Normally, if I owe you $20, I have two options. The first is not to pay and the other is to refund you. Classically speaking, those are the two options that everyone with debt has.
As for the government, since they centrally manage and control our currency, there is a third option. They can print more money and thus reduce the value of the debts they have.
[…] The United States of America cannot go bankrupt on its debts. Then the entire planet would collapse. However, we cannot refund it either. Those are the basics of how the world works. If we can’t go bankrupt and pay it back, what’s the only option left, despite what they tell you at the US Federal Reserve?
They need to spend more dollars,” said a clear Jack Mallers.
More dollars is bullish for Bitcoin
Those extra dollars in the system are bullish for Bitcoin, Mallers believes. They will find their way to assets with a limited supply such as Bitcoin.
“So there will be more pieces of green paper competing with each other for the most limited asset. There are more dollars competing for a limited amount of Bitcoin.
Yes, real estate can also increase in value because there are more dollars competing for real estate. But they can always build more real estate. You can get more gold from the ground. But they can’t make Bitcoin anymore,” Jack Mallers rages further at Bloomberg.
At the time of writing, the Bitcoin price clocks in at $70,644 and we are up 5.15 percent over the past seven days.
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Source: https://newsbit.nl/jack-mallers-bitcoin-naar-nieuwe-recordkoers-dankzij-amerikaans-schuldenprobleem/
