Tyler Winklevoss, one of the founders of the crypto currency exchange Gemini, reminded that the US debt stock has reached an unprecedented level since the Second World War and gave a “remedy Bitcoin” message. Famous cryptocurrency investor announced that Bitcoin (BTC) could provide a safe haven against the coming storm.
Tyler Winklevoss, one of the most famous names in the cryptocurrency world, announced that the ratio of US debt stock to GDP has reached 135 percent. Reminding that this rate reached up to 121 percent even during the Second World War, Winklevoss said that we are currently swimming in “unknown waters”. Saying that a storm awaits the world economy, Winklevoss stated that Bitcoin can provide protection against this storm.
A storm unseen in 75 years
The ratio of debt stock to GDP; It is obtained by dividing the debt amount of a country by the production power of that country. The result can be used to find out if that country is producing enough to pay its debt.
A study conducted by the World Bank showed that a debt stock to GDP ratio exceeding 77 percent could be risky for countries. According to this research, whenever this rate rises by 1 percent after passing the 77 percent threshold, the economic growth of that country decreases by 1.7 percent. Winklevoss emphasized that this rate rose to 135 percent for the USA.
“I have no doubt that Bitcoin will be 100 thousand dollars”
PlanB, a cryptocurrency analyst, who adapts the stock-flow model (S2F) to Bitcoin, believes that these economic developments will reflect positively on the Bitcoin price. In a post he made 3 days ago, PlanB said that the model he developed for Bitcoin is still working smoothly and he has no doubt that the BTC price will be at least $ 100,000 by December 2021.
PlanB said in another post yesterday that the balance sheets of the Fed and the European Central Bank have reached an all-time high, which is a positive development for assets such as Bitcoin.
— PlanB (@100trillionUSD) November 10, 2020