Cryptocurrency expert predicts imminent collapse of the digital asset industry

Peter Schiff, a well-known expert in the cryptocurrency industry, has expressed his opinion on the situation in the world. In his profile on the X platform, he discussed several topics that directly affect the US economy. First of all, the expert spoke about the potential consequences of the conflict in the Middle East for the entire world, and in particular, the cryptocurrency industry.

«None of this will be pleasant in the short term. Everything creates huge problems. It destabilizes the whole region. There is already a lot of tension there,» Schiff said. — «Many people underestimate the impact that we will see. First of all, these conflicts are very expensive. They cost money. They come at the expense of civilians, production and other factors. Any economist who claims that this is good because it increases GDP does not understand what they are talking about.»

Schiff is confident that the United States will also be at the center of the conflict between Israel and Palestine. According to him, this will lead to an increase in the deficit and an increase in budgetary incentives, which are already inflationary. Consequently, the government will start printing money again, which will only exacerbate the problem.

The crypto expert warned that these circumstances will weaken the US and global economy. Risky assets, especially cryptocurrencies, will also suffer significantly.

Schiff does not expect the Federal Reserve to continue raising interest rates. The expert assured that in the context of the conflict in the Middle East, such steps should not be taken «under such uncertainty.» The expert added that it might be necessary to cut rates on the contrary.