In theory, it is conceivable to repay a large portion of the national debt by holding a large amount of BTC.
Source: zycrypto
Translation: Blockchain Knight
Former US President Trump recently proposed the idea of using BTC to repay the government's massive $35 trillion debt.
Yesterday, Trump expressed this opinion in an interview with "Fox Business". This is another move related to the crypto asset industry that Trump proposed before the November election.
US Treasury Secretary Janet Yellen has publicly expressed concerns about the future development of the US dollar.
As the world's largest economy, the US adds about $1 trillion in debt every 100 days, leading to persistently high inflation. The Federal Reserve is also struggling to address numerous economic challenges.
For over a year, Trump has been actively seeking favor from the BTC community, a stark contrast to his 2019 stance of calling digital currencies a scam.
At that time, Trump did not realize the potential of the US crypto asset community, and now the entire community has over 10 million voters.
Recently, he has taken several significant measures to address the concerns of ordinary crypto asset users. These include the negative attitude of the US Securities and Exchange Commission (SEC) towards the digital currency economy, the right to self-custody using private wallets, and high taxes.
Trump has promised to address these issues if he takes office. His speech at the 2024 BTC conference also confirmed this commitment.
Trump stated that he supports purchasing BTC to save the US dollar and maintaining strategic reserves of crypto assets, while opposing the sale of billions of dollars' worth of BTC shares by the US government.
In addition, Trump also promised to dismiss SEC Chairman Gary Gensler on the first day of his term from 2025 to 2029.
This goes beyond the general demands of the US government by the crypto asset community over the years.
Given the Democratic Party's skepticism towards BTC, Trump continues to maintain a lead. It will be a daunting task for the opposition party to gain the support of crypto asset users.
The current market value of BTC is slightly over $1.1 trillion, with approximately $300 billion not in circulation. Considering this valuation, it is currently not feasible to repay the US $35 trillion national debt with BTC.
However, due to the unsustainable borrowing behavior of the US government and the deflationary nature of BTC, many people expect the value of crypto assets to steadily rise relative to the US dollar.
Therefore, in theory, it is conceivable to repay a large portion of the national debt by holding a large amount of BTC.
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