The Shapeshift CEO is very outspoken about his thoughts on the cryptocurrency and digital asset markets. Erik Voorhees, who operates the instant digital assets exchange, believes crypto will rally when fiat eventually becomes redundant.
In a recent tweet, Voorhees talks about organizations having a hard time paying back over $20 trillion in debt, which would eventually lead to the next global financial crisis. Voorhees believes fiat will be doomed when governments have to start printing money and during this time, he expects something special to happen to cryptos.
When the next global financial crisis occurs, and the world realizes organizations with $20 trillion in debt can't possibly ever pay it back, and thus must print it instead, and thus fiat is doomed... watch what happens to crypto.— Erik Voorhees (@ErikVoorhees) November 8, 2018
Voorhees argues that while crypto may also see a decline if a financial crisis was to occur as people would try and cash out, this would just be during the early phase and that the world would move away from fiat money and move into cryptos, as cryptos have no affiliation to governments and cannot be printed with no fixed supply.
They may drop during the early phase liquidity crunch, but ultimately the world will move away from fiat money (printed without end, trending toward zero) toward crypto money (known, transparent, fixed supply, not subject to politicians' opportunism).— Erik Voorhees (@ErikVoorhees) November 8, 2018
Voorhees admits he would prefer not to see any of the above happen in real life, and advocates against "flag money, because its inevitable collapse necessarily leads to it"
I dont want any of that stuff to happen. That’s why I advocate against flag money, because its inevitable collapse necessarily leads to it.— Erik Voorhees (@ErikVoorhees) November 9, 2018
Either way, it looks like if there is ever another major financial crisis, crypto will be there to lend a hand. How that play out is yet to be seen.