The rise of the U.S. National Debt is becoming a relevant factor in the geoeconomic landscape, as investors consider this factor when making asset picks. The U.S. Treasury recently reported that the debt reached an all-time high of over $36 trillion as part of its “Debt to the Penny” dataset, which reports on the daily outstanding debt numbers.
The jump to $36 trillion happened on November 21, when numbers indicated the amount owed by the U.S. surpassed the mark for the first time. Just this year, the debt has increased by over $2 billion. Also, Biden’s administration has seen debt numbers rise from $28 trillion to more than $36 trillion, growing by over $8 trillion in just three years.
Analysts have stated that these constant debt increases are very significant to the future of bitcoin, claiming that if the U.S. finally adopts a strategic bitcoin reserve, it can reset the world’s economy. Legendary investor Stanely Druckenmiller has recognized the gravity of the debt issue, having recently stated that the country would face a reckoning in an uncertain future.
Read more: Billionaire Investor Stanley Druckenmiller: ‘We Have a Reckoning’
Samson Mow, CEO of JAN3, has also linked the debt rise to a possible bitcoin rebase of the national currency. This would take the price of bitcoin to at least $1 million allowing the country to pay for the whole national debt using its strategic bitcoin reserve. “Either there’s going to be a debt jubilee or the U.S. dollar has to rebase to bitcoin. There are 100 million satoshis in a Bitcoin and you could reprice the US dollar to one satoshi,” he stated.
Read more: JAN3 CEO Samson Mow Doubles Down on $1 Million BTC Prediction Following U.S. Debt Escape Event
Ripio CEO Sebastian Serrano also believes this rise will cause a dollar devaluation, and as a consequence, a bitcoin and Wall Street bull market as the country resorts to money printing to ease the situation. “In the long term, the fiscal state has no other option but to devalue the currency. The U.S. debt is already $36 trillion,” he stated.
Read more: Hellish US Debt Scenario Could Propel Bitcoin to $1 Million by 2030
