• Cryptocurrency prices have been on the rise, with Bitcoin and Ethereum doubling in value this year.
• Technology investor Balaji Srinivasan has expressed concern over the U.S. financial system due to excessive money printing.
• The recent banking crisis has impacted San Francisco-based First Republic, with government officials discussing a rescue plan.
Cryptocurrency Prices Surge
Cryptocurrencies such as Bitcoin and Ethereum have seen their prices double this year, despite warnings of potential financial crisis from investors such as Balaji Srinivasan. This has led to optimism that the “crypto winter” might finally be over.
Balaji Srinivasan’s Prediction
Technology investor Balaji Srinivasan made headlines in March when he predicted that the U.S dollar would enter a hyperinflationary death spiral and that bitcoin would climb to $1 million by June 16th. Although he later scaled back his prediction, he is still concerned about the state of the U.S financial system due to its rampant money printing practices. He believes there is a 10% chance of a severe issue occurring in months, a 70% chance in years, a 19% chance in decades, and a 1% chance it takes a century or more for such an event to occur.
Recent Banking Crisis Impact
The recent banking crisis has taken its toll on Silicon Valley Bank, Credit Suisse, Signature bank and Silvergate – all crypto-friendly banks – as well as San Francisco-based First Republic Bank recently suffering $100 billion outflows and its share price dropping 98%. Rising interest rates have further exasperated matters for First Republic Bank too with government officials now discussing possible rescue plans for them .
Are Trillions Printed Ushering In A Financial Tsunami?
With governments across the world seemingly reliant on money printing practices to support fragile banks and economies, some fear that it could lead to an eventual black swan-style event resulting in catastrophic damage to global markets – or worse!
Despite warnings from investors like Balaji Srinivasan of potential financial disaster ahead due to excessive money printing by governments around the world – cryptocurrencies continue their surge in value buoyed by optimism that “the crypto winter” might finally be over!