Max Keiser believes that if the United States debt profile continues with the current level, It will only take 5 years for the interest paid on the United States debt to outpace its GDP, by then America would have become a failed state. This idea is supported by the continuing momentum coming from investors like Paul Tudor Jones.
The United States debt profile now sits at a staggering 26 trillion dollars with interest on the debt now floating above the value of the biggest item on the U.S budget – the $1.6 trillion spent on the U.S military weaponry. A lot of concerns are already brewing around the astronomical rise in the United States debt profile.
Bitcoin evangelists have capitalized on the ever-increasing United States debt, the incessant printing of fiat currency out of thin air, and the looming economic crises to massage Bitcoin’s ego as a reliable safe-haven asset.
Paul Tudor Jones Shifting Focus To Bitcoin
The writing on the wall clearly spells a possible deep recession in 2020 and beyond, a lot of institutional investors are already turning to Bitcoin as a possible hedge for what is yet to come should the global economy take a nose-dive.
In May, it was alleged that legendary trader Paul Tudor Jones was reportedly buying Bitcoin as an inflation hedge as central banks around the globe are printing fiat excessively. Following this news of Tudor’s involvement in the cryptocurrency market, the price of Bitcoin which was trading below the $9k mark at that time had jumped by 4%.
Tudor Jones who has been a well-respected wall-street personality might be on track towards becoming the biggest Bitcoin holder in two years’ time. Max Keiser had stated this in a recent interview:
“The Bitcoin community has never seen the likes of PTJ and will be shocked by his take no prisoners audacity.”
Nations Are Already Rising To Bitcoin Reality
At the time, over 65% of Bitcoin’s hash power originates from China, with America, Russia, and Iran warming up to the stage. According to Keiser, this shows Nations are accumulating Bitcoin for the rainy days ahead. The biggest winners of the global economic downturn then will be the Bitcoin holders.
Keiser further reiterated that the stock market is poised for an all-time high this year, not because companies are doing well but because the currencies are collapsing. Max Keiser who has been extremely bullish on Bitcoin price believes that the timeline for total collapse of the United States Dollar and currencies around the world will coincide with Bitcoin’s rally to $400k.