The US national debt has crossed $30 trillion — and even all the bitcoin (BTC) in the world is unlikely to be touched.
According to the latest official statistics, the US public debt has hit never-before-seen levels, breaking the $30 trillion psychological barrier for the first time this week.
Bitcoin is worth less than 3% of US government debt
After two years of liquidity grants fueled by additional debt issuance, the Federal Reserve is trying to rein in what has become an inexplicably large debt burden.
$30 trillion – $30,000,000 is such a big number that even the entire market value of cryptocurrencies looks like a drop in the ocean.
If we look specifically at Bitcoin, which has a market value of $731 billion, that represents 2.43% of the total government debt.
Thus, even if the United States buys all the bitcoins in circulation, it will still only pay off a small portion of the debt.
The actual size of the amount has not gone unnoticed by Bitcoin proponents, who have been discussing the topic extensively on social media.
Analyst Dylan Leclerc concluded: “As the debt spiral grows, the purchasing power of the dollar will continue to be sacrificed to Wall Street’s political interests and aid packages.”
“Bitcoin fixes that.”
Meanwhile, Alex Gladstein, chief strategist at the Human Rights Foundation, stressed the self-sufficiency of US debt, even as the value of the dollar plummeted.
He wrote: “The ingenious design of the international dollar system over the decades (1944, 1973, etc.) to prolong market interest and demand for U.S. debt, even if blatantly discredited.”
Meanwhile, the Federal Reserve’s balance sheet now stands at $8.86 trillion, the highest level ever.
Federal Reserve Balance Sheet (screenshot). Source: Federal Reserve.
$40 trillion in three years?
On rare occasions, gold expert Peter Schiff, meanwhile, has been making dire predictions about the direction of government debt.
Related Topics: Rising Global Inflation Leads to Radical Changes in Bitcoin
Despite the Fed’s alleged balance sheet reduction commitments, Schiff believes total debt will reach $40 trillion by 2025.
His son Spencer Schiff, known for his pro-Bitcoin stance, notes that the journey from $20 trillion to $30 trillion took less than five years.
Cointelegraph has detailed the benefits of bitcoin’s fixed supply and fixed issuance, which ensures it remains “hard” money – and perhaps the most “hard” money ever created.