According to Strike CEO Jack Mallers, record-high US debt will push Bitcoin to even greater heights
The CEO of Lightning Network Wallet Strike says the rapid accumulation of US government debt will be the catalyst that drives Bitcoin (BTC) higher.
In a new interview with Bloomberg Technology, Jack Mallers says the United States has no way of paying off its record $34.578 trillion in debt.
According to Mallers, he expects the government will eventually start printing money and issue more dollars to meet its financial obligations.
“Our government is in debt. Traditionally, if I owed you $20, I would have two options. First, I would have to default on it… Second, I could pay it back. These are traditionally the two options available to anyone who is in debt.
Unfortunately, since the government now centrally plans and controls our currency, it has a third, and that is that it can print more money, devalue the debts that it has and that it owes, and allocate more capital to itself so that our Government does not become insolvent.
The USA, the United States of America cannot default on its debts. It would cause the entire planet to collapse. We can't afford to pay it back either… That's just 101 basics [of] how the world works. If we don't default and we can't pay it back, then what is the only option that they have to do, no matter what they say and tell you at the Fed board meetings and all the economists?
They need to spend more dollars.”
With more dollars in the system, Mallers expects the excess of fiat currencies to find its way into limited supply assets like BTC.
“So if there are to be more green pieces of paper, then you should let them compete for the most stable thing. There are more dollars competing for a fixed amount of Bitcoin.
Yes, real estate will also rise because more dollars are competing for real estate. But they can create more real estate. You can find more gold. They can no longer make Bitcoins.”
At the time of writing, Bitcoin is trading at $70,301.
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