The idea that 1 million Bitcoins could eliminate the $36 trillion U.S. national debt is being met with heavy skepticism, particularly from long-time Bitcoin critic Peter Schiff.
Schiff argues that for Bitcoin to cover such a massive debt, its price would need to surge by more than 20,000%, which he considers highly unrealistic.
Bitcoin’s current value vs. U.S. national debt
At approximately $100,000 per Bitcoin, holding 1 million Bitcoin would amount to just $100 billion. This figure pales in comparison to the $36 trillion national debt. Schiff points out that Bitcoin would have to skyrocket in value to achieve this goal, which he believes is implausible.
Additionally, the U.S. debt continues to grow as the government borrows money year after year. Even if Bitcoin were to increase significantly, the rising debt would further complicate any attempt to pay it off with Bitcoin alone. Schiff maintains that the sheer scale of the debt makes such an idea unrealistic.
A gallon of milk will also cost $87,000.
— joshman (@__joshman__) December 13, 2024
Schiff’s doubts about Bitcoin’s value and adoption
Peter Schiff has consistently criticized Bitcoin, arguing that its value is speculative rather than driven by real-world demand. He believes Bitcoin’s price growth is primarily fueled by investors hoping for future gains, not by its use as a functional currency. He also highlights Bitcoin’s extreme volatility, which makes it unreliable as a store of value or medium of exchange.
Schiff further questions Bitcoin’s ability to achieve widespread adoption. While some countries have embraced it, most governments are unwilling to replace their national currencies with Bitcoin. This resistance confirms Schiff’s belief that Bitcoin will never serve as the world’s primary currency.
Bitcoin supporters remain optimistic
Despite Schiff’s skepticism, some Bitcoin supporters argue that the cryptocurrency will continue to rise in value as adoption increases. Many believe that Bitcoin could one day reach $1 million per coin, positioning it as a viable alternative to traditional financial systems. They claim that Bitcoin’s limited supply and decentralized nature make it an attractive long-term asset.
However, Schiff remains unconvinced. He emphasizes that the market cap required to pay off the U.S. debt with Bitcoin is unrealistic and unattainable. He describes Bitcoin as a speculative asset driven more by hope than practical demand, further dismissing the idea of its ability to solve the national debt problem. While Bitcoin may continue to gain attention, Schiff believes using it to pay off the U.S. debt remains far-fetched.
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