The alarming pace at which the United States’ national debt is growing, with an additional $1 trillion approximately every 100 days, has raised concerns over a potential inflation surge. Recently, former President Donald Trump suggested that the US government utilize Bitcoin or another form of cryptocurrency to repay the staggering $35 trillion national debt and prevent a possible debt crisis from occurring.
In a discussion with Maria Bartiromo from Fox News, the Republican Party’s potential candidate for the 2024 presidential election, Trump, commended the crypto industry. The former President stressed that the US must innovate in the area of digital assets, or risk other nations taking the lead. Trump subtly suggested the pivotal role Bitcoin could potentially play in alleviating the national debt – Possibly using Bitcoin to clear our $35 trillion national debt.
This proposition by Trump signifies the strength of this finite supply asset in absorbing US dollar inflation, ushering in a new era built on solid money and blockchain technology.
The constant printing of more currency by the US government in an effort to manage outstanding debts, is causing the US dollar’s value to decrease. Congruently, the value of Bitcoin in relation to this fiat currency, is on an upward trajectory. A massive growth in the $35 trillion debt has been observed. The US national debt took about 200 years to cross the $1 trillion threshold initially. However, presently, this amount gets added to the national debt about every three months, resulting from excessive spending.
June’s figures revealed that approximately 76% of all income tax revenue was used to service the interest on the debt, making these interest payments one of the highest expenses in the US budget. The transfer of value from the current US dollar system into the finite supply of the digital asset, Bitcoin, could offer a solution to this problem, thereby preventing a full-blown currency collapse.
A sentiment shared by independent presidential candidate Robert F. Kennedy Jr. during a recent interview with Cointelegraph, where he implied that establishing a Bitcoin reserve could aid the government in servicing its national debt as the value of the underlying Bitcoin continues to grow.
Furthermore, a bill has been presented by Senator Cynthia Lummis suggesting the establishment of a Bitcoin strategic reserve in the US as a countermeasure to the damaging impact of unchecked money printing. This strategy would also uphold the US’s financial superiority in global trade and markets. The goal set by the Senator from Wyoming for the US Treasury is to purchase 5% of Bitcoin’s total supply and to hold this limited supply decentralized asset for at least 20 years as a safeguard against currency devaluation by the Federal Reserve and bad fiscal management.