Crypto Chronicle with NewsCrypto

Welcome back Crypto Chronicle readers!

You're at a family reunion, and there's that one cousin who keeps borrowing money but never seems to pay it back but still asks you to lend him more every time you meet. Now, imagine that cousin is a country, and you've got the US.

Curious about how this borrowing spree might shake up your financial future?

Let's crunch some numbers and see what's brewing under the surface.

Is The US on The Brink of Hyper Inflation?

We all know that the US likes to borrow and spend trillions of $ like it’s nothing but how will this affect your life? You will find out today.

The interest rates at which the US government has to borrow are going higher meaning they will have to borrow more and more just to cover the interest payments on the current debt. Let’s look at the numbers.

The current national debt is at $32.9 trillion but this doesn’t tell us the whole story. Let’s take a look at how quickly the debt grew just in the last 90 days (97 to be specific).

As you can see the debt grew from 5/31/23 till today by a whooping $1.5 trillion! Astonishing!

Although the interest rates are rising they are not rising as fast as they could. How is this possible?

The US government is taking advantage of the reverse repo facility - financial institutions park their cash in it for risk-free 0.05 higher interest rates compared to the market and in exchange for an asset (security). The reverse repo facility just recently saw an outflow of ≈$1 trillion - the government is “artificially” pushing the interest rates down. There is still $1.5 trillion left but what will happen when it’s drained? Interest rates could spike even higher…

Interest rates spiking isn’t the only problem, an even bigger problem will be paying down the debt even at just the current rates! Peter G. Peterson Foundation projects in just 10 years the US government will have to spend $10.6 trillion on interest rates alone! You heard it right, that’s 1/3 of the current national debt accumulated since its inception!

Just in the last 100 years, debt grew from $408 billion to $33 trillion, an increase of 8000%. In crypto terms, the chart looks like a “shitcoin”.

Can you guess how the US government plans to pay down these enormous interest rate payments? BORROW EVEN MORE!

We don’t want to speculate what will happen to the value of the US dollar but it looks bad…

Borrowing at this rate is unsustainable. The only thing you can do to prevent the (hyper) inflation from eroding your savings is to invest it and since the future is crypto, this is, in our opinion, the best solution or even just a hedge, you know just in case something happens.

Visa Supports USDC Payment on Solana

In a move that's as surprising as finding a Bitcoin in your old digital wallet (we wish, right?), Visa has decided to tap into the high-speed and low-cost Solana blockchain to expand its USDC payment capabilities. 

Why Solana?

For those who've been living under a crypto rock, Solana has been making waves (or should we say, blocks?) in the blockchain world. Known for its scalability and lightning-fast transaction speeds, Solana offers a promising infrastructure for handling a vast number of transactions at a fraction of the cost.

Visa's Vision

Visa's foray into Solana isn't just a random leap into the blockchain bandwagon. It's a calculated move to harness the power of USDC, a stablecoin pegged to the US dollar, and make digital payments smoother and more efficient. By integrating with Solana, Visa aims to provide its vast user base with faster, cheaper, and more reliable USDC transactions. It's like upgrading from a motorcycle to a jet plane in the world of payments.

What Does This Mean for the Crypto World?

Visa's partnership with Solana is a significant nod to the growing importance of blockchain technology in mainstream finance. It's a clear signal that traditional financial giants are not just acknowledging the crypto world but are ready to dance to its tunes. And let's be honest, who wouldn't want to groove to the beats of decentralization and innovation?

In Conclusion

As the lines between traditional finance and the crypto realm continue to blur, partnerships like these set the stage for a future where digital currencies are as commonplace as your morning coffee. And while we're still waiting for our lattes to be blockchain-powered, this move by Visa is undoubtedly a step in the right direction.

Funny Meme