Trump Teases Idea of Using Bitcoin to Pay $35T US Govt Debt
Republican presidential candidate Donald Trump got tongues waging on Friday after teasing about emancipating the US from debt using Bitcoin. In a Fox Business interview, the former president said he could repay the country’s growing debt using Bitcoin and cryptocurrencies.
“Who knows, maybe we will pay off our $35 trillion, hand them a little crypto check, right? We’ll hand them a little bitcoin and wipe out our $35 trillion,” Trump said in the interview with Maria Bartiromo.
Friday’s Bitcoin comment is one of Trump’s numerous remarks about the digital asset recently. The remark may have indicated that the former president believes Bitcoin could help solve the US’s debt issues, which has reached a new high.
Trump was all bullish about Bitcoin at a conference on July 27th, where he revealed plans to use the asset as a strategic reserve in the US.
Realistic or Just Talks?
Currently, the US government holds 203,239 BTC after moving over 7,000 BTC earlier in the week. Also, Bitcoin’s market cap stands at $1.23 trillion, and the entire cryptocurrency’s at $2.23 trillion.
For Bitcoin to clear the $35 trillion debt, the asset would have to trade close to $180 million per coin and have a market cap of $355 trillion. This scenario will only be workable if the US debt doesn’t increase further and the US government doesn’t sell any of its bitcoin.
Whether Bitcoin will ever trade at $180 million remains uncertain, but reaching that price will take a long time. Maximalist Michael Saylor predicted Bitcoin could hit $49 million in a bull scenario by 2045, accounting for 22% of global wealth.
The Crypto Community Reacts
The Trump tease was met with mixed reactions among the crypto community. Some saw the call as bullish for Bitcoin, and others questioned the logic behind the comment.
“Donald is a BTC bull now, and I am here for it!” a user said.
“Trump is really schilling for Bitcoin here. His point is valid if there is a real currency crisis. There will be crazy moves in currency valuations and don’t be surprised what the US is holding. They could be paying the debt, he’s not wrong,” another user added.
Another user criticized the tease, saying, “How? Inflate BTC to some imaginary value and create wealth of the thin air? Would love to know how Trump plans to do this.”
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