China’s Increasing Debt Burden Could Affect the Bitcoin Economy
According to the Bank for International Settlements’ credit-to-GDP gap, China could be dangerously close to a banking crisis that could threaten the future growth of the entire economy. Is China’s Debt-driven Economy on an Unsustainable Path? The Bank for International Settlements (BIS), a widely-respected financial watchdog, has reported that China’s....
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As the total debt of the US federal government surpassed it’s an all time high record with $19,659,460,647,160.83. Bitcoin is proving to be one of the very few alternatives for financial protection. The US economy is found on an entirely debt-based monetary system, which is presumed to surpass $20 trillion in debt by 2017. The outstanding debt of the US federal government is covered by the Federal Reserve’s quantitative easing process, in which billions of Dollars are printed out to be distributed amongst top-tier commercial banks, corporations, and the Federal Reserve bank. Bloated US....
The latest grim milestone for the U.S. economy means that its national debt total is now 4,000% larger than the Bitcoin market cap. The United States’ national debt has passed $30 trillion — and even all the Bitcoin (BTC) in the world would hardly touch it.According to the latest official statistics, U.S. national debt is at levels never seen before, passing the psychological $30-trillion barrier for the first time this week.Bitcoin is worth less than 3% of U.S. national debtAfter two years of liquidity injections fuelled by issuing even more debt, the Federal Reserve is attempting to rein....
According to the International Monetary Fund (IMF), China needs to control its corporate debt before the situation becomes unmanageable. Does bitcoin hold the answer? A report from the IMF has found that at $25 trillion, China’s debt accounts for 254 percent of GDP. As a consequence, startups and businesses could soon turn their attention to the growing popularity of bitcoin. Of course, China isn’t the only country that is experiencing a high percentage of GDP. CNN reports that the U.S. also has a similar percentage, but what sets China apart is the rate at which it has been growing. A....
With so much volatility in fiat currency and stock markets, traditional debt-relief solutions are not a valuable option either. Interesting things are happening in the world of traditional finance these days. China, while often seen as a prosperous economy, has received a stern warning from the IMF. The country needs to address their corporate debt levels before things spiral out of control. This will put a lot of pressure on entrepreneurs and corporations, which may cause citizens to flock to Bitcoin in the long run. China is one of the many countries in the world today dealing with a....
Fiat money extends the debt cycle and traps citizens in ever-increasing inflation — but bitcoin forces a reckoning.