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Trump Proposes Bitcoin to Solve US National Debt Crisis
Former President Donald Trump has proposed a radical solution to the United States government’s massive $35 trillion national debt: using Bitcoin or a “crypto check.” In an interview with Fox News’ Maria Bartiromo, Trump emphasized the need for America to innovate in the digital asset space and hinted at Bitcoin’s potential role in resolving the national debt:
“Who knows, maybe we’ll pay off our $35 trillion dollar [national debt], hand them a little crypto check, right? We’ll hand them a little Bitcoin and wipe away our $35 trillion.”
Bitcoin as a Solution to US Economic Challenges
As the US government continues to devalue the dollar by printing more currency to service existing debts, Bitcoin’s price relative to fiat currency keeps rising. To illustrate the magnitude of the $35 trillion national debt, it took the US approximately 200 years to cross the $1 trillion mark, but now, $1 trillion is added every three months due to deficit spending.
In June, around 76% of all income tax revenue was used to pay interest on the national debt, making interest payments one of the largest items in the US fiscal budget. Bitcoin, with its supply-capped nature, can help siphon value from the current US dollar system into a more stable digital asset, potentially averting a currency collapse similar to the Weimar Republic in the early 20th century.
Strategic Reserve Proposal
Presidential candidate Robert F. Kennedy Jr. suggested that establishing a Bitcoin reserve could help the government pay off its national debt as Bitcoin appreciates in value. Senator Cynthia Lummis introduced a bill to create a Bitcoin strategic reserve in the US to counteract the harmful effects of excessive monetary printing and maintain the country’s financial dominance in global markets and trade.
Senator Lummis aims for the US Treasury to acquire 5% of Bitcoin’s total supply, holding the scarce decentralized asset for at least 20 years as a safeguard against monetary devaluation by the central bank and poor fiscal policies.
Trump’s Vision for Crypto Leadership
Trump envisions the US leading in the crypto space:
“Crypto is a very interesting thing. Very high-level in certain ways, intellectually very high-level. But if we don’t do it, China’s going to do it. China’s going to do it anyway. But if we don’t do it, China’s doing it. China is already doing it, and if we don’t do it, other countries are going to do it. So we might as well be at the forefront.”
He emphasized the significance of embracing cryptocurrency to ensure the US remains a leader in this rapidly growing sector:
“It’s already prominent. It’s moving along. It’s very loosely regulated. That’s one of the reasons it’s moving along. But it is a different form of a currency, and it’s going to end up benefiting the country. But if we shut it down like, you know, Biden’s trying to shut it down– Biden doesn’t have the intellect to shut it down. Can you imagine this guy’s telling you to shut something down like that? He has no idea what the hell it is. But if we don’t embrace it, it’s going to be embraced by other people. You know, it’s a massive thing already. Did you read where it’s bigger than any company in the world already, if you look at the market. It’s bigger than many countries. It’s a very big thing. If we’re not going to be the leader– we have the people that are the leaders. I know some of them. They’re very smart. And if we don’t embrace it, other countries are going to embrace it. Other countries will anyway, but we can be the leader. We might as well be the leader.”
Disclaimer
This is just meant to be information; it is not financial or investment advise. Unexpected changes in market conditions mean that before making any financial decisions, one must carefully study and consult a professional.
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