Bitcoin solution to student debt crisis
By the end of 2019, global debt is expected to rise to $ 250 trillion led by the United States and China, drawing a gloomy picture of a global economy facing a crisis. In 2004, student debt stood at $ 260 billion, rising to nearly $ 1.7 trillion in just 16 years. Student debt in the US alone has been pegged to a staggering $ 1.69 trillion with no real solution in sight. This current model of running away debt is a perfect illustration of why we need Bitcoin.
The debt cycle, increasing every year, is beginning to become the rule rather than the exception, leaving many wondering when it will collapse catastrophically. Global debts have exploded over the past two decades. The numbers expected for 2019 will make us all nervous.
The debt problem in the United States has been broader than before because it is also the leading country of state debts. This should be considered because this debt could play a role in crippling the US economy. In addition, this is also a warning sign that something needs to be changed and Bitcoin provides a potential barrier from dangerous economic situations.
Global debt is expected to reach $ 250 billion by the end of 2019
The state government and the private sector as a whole have accumulated unprecedentedly large debts in history. In 1999, total global debt was only about 100 trillion dollars. Since then, it has increased by 150% after only 20 years. It is estimated that it does not seem to be slowing down and could reach $ 500 trillion faster than expected.
Oops! Global debt surged to a record $250tn, led by the US and #China and driven by record-low interest rates. In H1 of 2019 alone, another $7.5tn debt were added. https://t.co/kSP6evV4K3 via @RomanWenzl pic.twitter.com/0V5ScdF3KJ
— Holger Zschaepitz (@Schuldensuehner) November 15, 2019
China and the United States lead the world in government debt, but a growing slice of the pie is being taken on by private sector companies. Debt seems to have become the rule rather than the exception for almost all major companies, governments and banks in our present age.
Student debt is increasing at a rapid rate
The Federal Reserve Bank of New York said in February 2017 that student debt increased for the 18th year in a row and that loans for higher education doubled after only eight years. The concern in the United States, like the national debt, is that it is growing strongly with very little being done to limit the problem that is putting an additional burden on the economy as a whole.
The Federal Reserve’s policy has been open to trying to increase liquidity and boost the economy to make the US economy more precarious. Fed intervention is too strong, and many will struggle to return to quantitative easing policies.
Some people will believe that gold is the best hedge against any financial collapse, but movements from Bitcoin in early January could lead to digital assets becoming a safe haven.
An analyst, Mati Greenspan, believes that central bank policies are beginning to show cracks and can push people toward Bitcoin, while much debate about what caused the recent price increase.
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