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US bankruptcy: Is crypto a potential safe haven?

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The United States could face potential bankruptcy if debt limits are not lifted, and crypto might be a quick fix.

The US is one of the leading countries at the forefront of almost everything regarding entertainment and investment. However, with the possibility of the US going bankrupt as the economy collapses, this could quickly change.

We take a look at the current financial situation in the US and how it impacts the crypto casinos.

The banking crisis in the US

One of the biggest concerns in the US is the banking crisis, with research showing that banks have been burning through their capital buffers. The study shows that American banks are plummeting, and the declines are due to the seizure of the First Republic Bank by federal regulators on the 1st of May.

The crisis is deepening, and the prediction (or rather, fear) is that the US could be bankrupt by the 1st of June 2023.

The Secretary of the Treasury, Janet Yellen, announced that the country might default on the payment of the public debt by June 1st if Congress doesn’t raise the debt limit. This will be the first time the US defaults on its payments.

President Joe Biden is meeting with Congress members to discuss the matter. A default would mean putting the country in a solid red. And it seems the only solution would be to take out new loans.

While this is a situation that some countries have grown accustomed to, it is one that could be the final nail in the coffin for the dollar. This is considering the fact that the list of foreign countries turning to other alternatives for trade settlement is growing.

Crypto – Steady through the storm

While the US faces a storm and possible bankruptcy, the crypto market is holding it together. And this is good news for online casinos and those who enjoys online gambling and has an interest in starting to play with cryptocurrency.

The bank stocks might have taken a beating, but the crypto markets have rebounded and gained over 1.3% capitalization reaching about $1.22 trillion.

Bitcoin and Ethereum both went up by 2% on the same day. The fact of the matter is that should the US go bankrupt, cryptocurrency would be a viable option as its connection to gold consolidates it.

Americans can invest in crypto to protect their savings. As far as alternatives go, this is one of the best there has ever been.

There could be a potential Bitcoin price jump as industry experts expect it to hit a 25 bps interest rate hike. That being said, while the economy is collapsing and banks are experiencing pressure from all sides, the crypto industry is going strong.

Attack on crypto?

There’s a big possibility that crypto is not just the future but the solution to the financial crisis caused by the banks. This is not the first time an economic crisis has arisen, and it won’t be the last. But Bitcoin could be the answer which leaves you wondering if this is why finance regulators are set on destroying the crypto industry.

There have been plenty of attacks on the crypto industry, including suing Binance, shutting down Signature Bank illegally, handing an unjustified notice to Coinbase Wells, and so forth. The list goes on.

According to Capriole Fund founder Charles Edwards, the US banking system is experiencing heavy pressure and lashing out at crypto as a response.

One can hope that the US finds a temporary solution to tide it over, puts aside its own agenda and looks into ways of embracing cryptocurrency to minimize future financial crises.

Another solution would be to update USA gambling regulations to allow the online gambling sector more freedom. This could generate a large amount of revenue for the country as Bitcoin casinos grow with gusto which has been proven time and again in other countries.

For now, we’ll have to wait and see what the 1st of June will bring and what the fate of the US could be in the coming months.

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