Erik Voorhees, CEO of ShapeShift, is of the belief that cryptocurrencies are going to become a mainstream form of tender whenever the next Financial crisis occurs. Explaining his point further, he said, the total world debt has increased to $20 Trillion. Banks need to print more money to negate the liability. However, printing money does not solve the actual problem. In turn, it magnifies it, as the increase in the number of printed currency will subsequently decrease the market value of that currency. So, eventually, people would turn towards the Crypto world.
An excerpt from the interview with Express
When the next global financial crisis occurs, the world will realize organizations with $20 trillion in debt can’t possibly ever pay it back. Thus must print it instead, and thus fiat is doomed. Watch what happens to crypto.
Mr. Voorhees cited the example of 2017, where the markets declined towards the end of the fiscal year, and it pushed the value of Bitcoins upto $20,000. In 2018, when the banks gained some momentum, the value of Bitcoins decreased significantly and currently, it is trying to break the $6,500 mark.
The facts back Mr. Erik’s views, as it has been reported recently that 25% of the affluent millennials use or possess crypto in some form. Another 31% of the millennials are looking forward to investing in the cryptocurrencies. Given the liabilities modern day banking system posses, the crypto revolution might arrive, earlier than many have expected.
The Role of Institutional Investors in The Crypto World
Big companies are very keenly monitoring the ongoing trends and looking at the impact on the current markets. These firms are willing to maximize on the trend by providing institutional investors with crypto offerings.
Intercontinental Exchange (ICE), the parent company for the New York Stock Exchange( NYSE) has recently revealed that it will be offering Bitcoin futures on the Bakkt platform. The published report from the last month has shown that trading on the Bakkt platform will begin on 12 December 2018.
Another Investment exchange, Fidelity Investments has lately announced its plan for offering custody service for institutional investors interested in Bitcoin and Ether. So, it’s highly recommended to keep a close eye on these firms to understand the Crypto world and its trends better.