The US Treasury recently reported that the national debt has surpassed the $36 trillion mark, reaching an all-time high. Analysts have been talking about the positive implications of the rising debt trend on bitcoin and how it will eventually cause the US dollar to depreciate.
US National Debt Surpasses $36 Trillion: A Boon for Bitcoin?
The rise of the US National Debt is becoming a relevant factor in the geo-economic landscape, as investors consider it when making asset choices. The US Treasury recently reported that debt has reached an all-time high of over $36 trillion as part of its “Debt to Penny” dataset, which reports on the amount of outstanding debt on a daily basis.
The increase to 36 trillion dollars occurred on November 21, when figures showed that the US debt had surpassed this threshold for the first time. Just this year, the debt has increased by more than 2 billion dollars. Additionally, the Biden administration has seen the debt rise from 28 trillion dollars to over 36 trillion dollars, an increase of more than 8 trillion dollars in just three years.
Analysts have stated that this continuous increase in debt is significant for the future of bitcoin, claiming that if the US ultimately adopts strategic bitcoin reserves, they could reset the global economy. Legendary investor Stanely Druckenmiller has recognized the seriousness of the debt issue, recently stating that the country will face reckoning in an uncertain future.
Samson Mow, CEO of JAN3, has linked the rising debt to a potential restructuring of the national currency into bitcoin. This could drive the price of bitcoin to at least 1 million dollars, allowing the nation to pay off its entire national debt using its strategic bitcoin reserves. "Either there will be a debt purge or the US dollar must be restructured into bitcoin. There are 100 million satoshis in one Bitcoin, and you can reprice the US dollar to one satoshi," he stated.
The CEO of Ripio, Sebastian Serrano, also believes this increase will devalue the dollar, and as a consequence, bitcoin and Wall Street will rise as the nation has to print money to ease the situation. “In the long run, the financial state has no other option but to devalue the currency. US debt has reached 36 trillion dollars,” he stated.