Is US debt ceiling crisis a catalyst for crypto's ultimate decoupling?

US debt ceiling crisis: A catalyst for crypto’s ultimate decoupling? Many in and beyond the crypto industry believe that the political standoff around the debt ceiling increase makes digital assets more attractive in the long run. The United States federal government’s default on its debt has been averted — at least for now.

What is a debt ceiling?

The debt ceiling establishes the maximum limit on the U.S. Treasury’s outstanding debt . Before 1917, the U.S. government needed Congressional permission each time it borrowed money. During World War I, Congress established the debt ceiling to give Treasury the flexibility to sell Liberty Bonds to help finance the U.S. war effort.

Are alternative currencies causing a debt ceiling crisis?

The rise of alternative currencies—including gold, Bitcoin, and the yuan—can only diminish its influence, and there is a looming risk that could accelerate this trend. I’m referring to the impending debt ceiling crisis, which could see Republicans tank America’s creditworthiness while engaging in a needless political stunt.

Is the debt ceiling causing government shutdowns?

There have been a number of showdowns over the debt ceiling, some of which have led to government shutdowns. The conflict is usually between the White House and Congress, and the debt ceiling is used as leverage to push budgetary agendas.