Bitcoin is climbing higher and higher, with crypto analysts looking to the fiat world for possible reasons. Following Iran firing missiles as US air bases, Bitcoin began to rise sharply, with eToro noting a comparison between gold and Bitcoin in the days following the events. However, at the same time, US mortgage debt has risen to a fresh all-time high, prompting many people to start turning to cryptocurrency as a safe haven, just as we’ve seen in other countries that have faced recession and hyperinflation.
Whether a recession and financial crisis will hit or not is still yet to be seen, but this phenomenal amount of mortgage debt is beginning to spiral out of control.
A Tinderbox Waiting for a Spark
As it stands, the US is a huge tinderbox and one more negative factor could see the US go up in flames. With mortgage debt higher than during the 2008 financial crisis, Trump going through an impeachment hearing and the US on the brink of war with Iran, the US is fighting a huge number of battles and cannot afford to lose. If one of these factors does cause some negative blowback economically, we could see the delicate financial balance go up in flames, causing the country to plunge into mid 2008 chaos.
Can Bitcoin Save the Day?
Bitcoin could very well act as a safe haven in the case of a complete global financial crisis, and it’s already laying the foundations to do so. As we’ve seen in Venezuela and Iran, as soon as the fiat currency falls and the country hits hyperinflation, Bitcoin suddenly becomes much more valuable in the region. In fact, Chinese state media has called Bitcoin a safe haven asset multiple times.
So, if the US does crash and burn in a financial crisis like we saw in 2008, it looks like people could very well start turning towards Bitcoin and other cryptocurrencies as a way to escape from the spiraling death trap that will become the US dollar!