Worrying data about the United States’ economy showed that average budget deficit to reach $1 trillion annually in the coming years, representing c.4.5% of GDP.
Crypto hedge fund manager Travis Kling revealed some data which showed that annual deficit is expected to hit $12.2 trillion for the recent decade. These date were compiled by Congressional Budget Office (CBO).
“Such deficits would be significantly larger than the 2.9 percent of GDP that deficits averaged over the past 50 years,” the CBO commented on these projections.
It is worth mentioning that the aforementioned number, namely the $1 trillion, is more than 6 times Bitcoin’s market cap and 4 times the market cap of all cryptocurrencies combined.
Yesterday, market cap of all cryptocurrencies combined reached $235 million, with Bitcoin comprises almost 66% of the total amount.
Financial experts raised worries about United States Administration’s ability of managing excessive government debt levels that could impact economic stability calling for the necessity of creating central bank digital currency (CBDC).
The World Economic Forum (WEF) has created, in cooperation with some of the world’s major central banks, a central bank digital currency (CBDC) policymaker toolkit, shedding light on merits and demerits of such a move.