Could A Bitcoin Treasury Fix The US National Debt? One Trader Details How 'Bitcoin Fixes This'

The U.S. government’s increasing debt burden of $35 trillion, could potentially be addressed by a Bitcoin BTC/USD treasury, a prominent trader suggested.

What Happened: The trader highlighted the severity of the U.S. debt crisis, with the debt-to-GDP ratio standing at 125% and the sovereign debt burden growing at a rate of $10 billion a day.He points out that interest expenses account for 20% of revenue, meaning the U.S. spends more on servicing its debt than on its military.

"Bitcoin Fixes This"
Can a Bitcoin Treasury Fix the National Debt?

As the federal debt, growing at $10B a day, passes $35 trillion dollars, the very solvency of the US becomes a bigger question with each passing day. We now spend more on servicing our debt than on the greatest… pic.twitter.com/wixx9kr4Vy

— infra 🏛️⌛️ (@infraa_) July 20, 2024

In light of these facts, the trader points out that Bitcoin’s Compound Annual Growth Rate (CAGR) has been impressive (1,200%) since its inception, even when considering the decrease in CAGR as adoption has increased. Over the past 10 years, Bitcoin's CAGR is 185%.

He hypothesizes that if the U.S. were to print a one-time sum of $1 trillion and invest it in Bitcoin, assuming a 100% CAGR, the value of the investment could potentially cover the national debt within a few years.

Also Read: Bitcoin As A Strategic Reserve Asset For The US? Expert Details How Trump Could Make It Happen

Why It Matters: Infraa’s thought experiment comes amid growing concerns about the sustainability of the U.S. debt. The tweet argues that the government’s current approach to managing its debt, which involves significant inflation, is not sustainable in the long term.

The trader is curious whether U.S. leaders have the political will to implement such a strategy, leaving readers to ponder the potential of Bitcoin as a solution to the national debt crisis.

Polymarket bettors currently predict a 28% chance of Donald Trump announcing a strategic Bitcoin reserve. Dennis Porter, CEO and Co-Founder of Satoshi Act Fund, recently proposed incorporating Bitcoin into the U.S. Exchange Stabilization Fund (ESF) as a strategic reserve.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next:

• Peter Schiff Compares Hopes That Trump Declares Bitcoin As Treasury Reserves’ With Biden’s Student Loan Forgiveness: Claims ‘Buying Votes’ Is Why US Wasn’t Meant To Be A Democracy

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