US Debt Crosses $35 Trillion For the First Time — Is Bitcoin the Answer?
Yesterday, the total US national debt surpassed $35 trillion for the first time in history. According to the Debt tracking website Peter G. Peterson, this equates to $104,000 in debt per citizen, with the government borrowing an average of $5 billion daily. Irresponsible borrowing has been a cornerstone of American economic policy for the past 50 years, escalating rapidly in recent years.
Has the American Money Printing Press Gone Too Far?
Historically, entire empires have been brought down because they were not responsible for currency management. Endless wars, trade deficits, and other factors are some of the major reasons behind this living beyond means experience. However, the US has so far been able to avoid a direct catastrophe because of the high demand for the US Dollar around the world.
However, this hasn’t stopped economists and businesspersons from expressing extreme concern about it. Elon Musk, for example, took to X and tweeted:
According to The Economist, America’s borrowing is a cause of national concern and a direct danger to its economy. It continues to state that the American state is spending more on debt servicing than even national defense.
However, the borrowing problem is not limited to America alone. States around the world are heavily indebted, and that is reflected in their economies. Inflation remains rampant, and the middle class continues to bear the brunt of the issue.
Is Bitcoin the Answer?
Economists are searching for an answer to issues resulting from reckless spending. Major asset manager VanEck said BTC will become a major part of national reserves in the coming decades. Countries will consider BTC a reserve because of its deflationary nature.
They have successfully managed gold over the years despite its loss of official standard status in 1971. Central banks continue to increase gold reserves to bolster confidence in their currencies.
Economists already see Bitcoin as a significant economic hedge, with major economies holding substantial amounts as seized assets. While adoption as a reserve asset is slow, El Salvador leads in this area, holding a significant crypto-to-asset ratio. Under former President Trump, the US signaled a potential shift towards Bitcoin integration if he wins the 2024 election. Widespread global adoption could follow if the US changes its policy.
