Bitcoin’s Critical Crossroads: Boom or Doom Ahead?

Bitcoin is poised for a massive break. The technicals are signaling for a massive pump in price, meanwhile, the fundamentals are sounding the alarms for an interesting insight into what the Bitcoin consensus may be. It either becomes a life raft for tons of money, or it just becomes a skeptical object that people do not adopt entirely. In this video, I’ll be going over the technicals that are showing us we are ready for a surge in price, and I will also be highlighting the potential boom or doom that Bitcoin may endure due to reckless government spending and the largest debt spiral that we have ever seen, which will have huge ramifications on the US dollar as we know it.

I’m Matt Jimenez

My name is Matt Jimenez, and if you don’t know who I am, I am an entrepreneur who has worked with the greatest minds in finance. One thing that I’ve learned through experience is that cash flow is king. Now, I make these videos to shine light on something I like to call smart risk because every decision we make, whether we do or don’t do something, still has its own risk attached to that very thing. Now, without further ado, let’s jump right into it.

Before we get into Bitcoin’s price action, I’d like to go over something called a debt spiral. Now, for those of you that don’t understand what a debt spiral is, to put simply, it is when somebody takes out more debt in order to cover old debt. Now, the problem with this is oftentimes the new debt that you take out is attached to a much higher interest rate, which entails a debt spiral because you could see very quickly how the old debt will never fully get paid because it keeps getting compounded with a new debt with a higher and higher interest rate, which makes payments almost impossible to get caught up with. This is the very exact thing that is happening with the US government at this current moment.

Let’s start off with the national debt that is currently growing every single day. The problem with this amount of debt is, in 2024, $16 trillion. Nearly half of that debt is going to mature. Now, when debt matures, that means it is owed, meaning you have to pay it, kind of like your Amex card. When you swipe your credit card and that credit matures, you must pay your payment or what happens? It goes to collections.

The problem of this is the majority of the debt was borrowed over the last decade when interest rates were much lower than where they are right now. Now, there’s only two ways for the government to try and attempt to pay the mature debt back. One is taxation, and we all know that taxation does not even account for a remotely close number to 16 trillion. So their alternative is borrowing. They are going to have to ask the Federal Reserve for x amount of dollars to pay back this debt of $16 trillion in 2024.

But the problem is when we do borrow from the Federal Reserve to pay this back, interest rates have risen dramatically since we borrowed all this previous currency. So now we’re taking out new currency with a much higher interest rate, only making our debt almost impossible to get caught up on. By the end of the year, the government will owe about 1.2 trillion just in interest payments.

Now, I didn’t just make up this $1.2 trillion. Let me explain how I got this number. Because interest rates across the board right now, whether it’s short-term or long-term, short-term is sitting at about 5-5.1%, and long-term is sitting at about 5-5.1%. Now let’s do the math. If we take $6 trillion and multiply it by 5%, that puts the interest portion at half the national debt at $800 billion. Now there’s still a remaining $17 trillion left for the other half of the national debt. Now if we take the other $17 trillion and leave it at, let’s say 3%, that gives us about $500 billion in debt…

Please visit Bitcoin’s Critical Crossroads: Boom or Doom Ahead? to continue watching!

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Jeff Sekinger

Founder & CEO, Nurp LLC

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