Max Borders thinks printing money contributes to raising rates and curbing inevitable inflation, stressing the consequences of intervening initiatives. He recommended using Bitcoin correctly to guarantee it becomes a store of value and a hedge against inflation.
Financial guru Max Borders recently admitted that the US economy is at risk of imploding.
He also suggested that gold and Bitcoin (BTC) would be crucial tools to avoid future economic catastrophes.
The author of The Decentralist shared his profound insights into the US economy and explained how these assets could help reduce inflation.
The US Economy May Face Difficulties for Various Reasons
According to Borders, the US debt exceeds 130% of GDP, the main problem with the economic system. Despite over USD 300 trillion in debt worldwide, only USD 100 trillion is in manufacturing.
The analyst uses the COVID-19 epidemic to illustrate that the Federal Reserve (Fed) is in a besieged city. He thinks printing money to reduce supply only contributes to raising rates and curbing inevitable inflation. In addition, he stresses the unpredictable consequences of intervening in macro-financial initiatives.
Another issue that Borders perceives is the clash between the political elite and the financial institution. Despite the feasibility of alleviating the situation through financial spending during the COVID-19 pandemic, it was not financially responsible.
Max Borders Thinks Bitcoin and Gold Can Help Solve Financial Problems
Borders suggests that Bitcoin and Gold could solve global financial problems. The expert thinks people have lost their trust in institutions, saying that BTC might come to the rescue again like in 2009.
The cooperation between the federal government and rapacious corporations became more evident with the 2008 housing catastrophe. Bitcoin can disrupt existing institutions by offering a competitive option to established businesses. Borders also criticized the whales for considering cryptocurrencies a risky investment.
To deal with difficult situations, he recommended using Bitcoin correctly for it to become a store of value and a hedge against inflation. Therefore, he considers that widespread adoption would decrease the volatility of the crypto asset.
The Price of Bitcoin and Altcoins Might Raise Steadily Next Weekend
After the Fed raised interest rates by another 75 basis points last week, Bitcoin and leading altcoins grew significantly. In addition, the US gross domestic product remained negative for the second consecutive quarter. That situation drove the crypto markets higher, as Bitcoin (BTC) and Ether (ETH) broke above USD 24,000 and USD 1760, respectively.
Altcoins joined the trend set by the top two cryptocurrencies, gaining significant momentum. However, BTC and ETH experience a slight pullback after reaching the initial highs but remain close to these levels. Therefore, the closing in the next few weeks is relevant to determining a plan of action.
Next weekend, the price of BTC could steadily rise above USD 24,700. However, after rejecting these levels, it could have a consolidation between USD 22,200 and USD 23,800.
In addition, the dominance of USDT might decline as capital might flow into altcoins. That paves the way for an increase in the price of Bitcoin, preceding the leading altcoins.
By Alexander Salazar
