The US national debt has surpassed $35 trillion, with each American citizen owing $104,000 in debt. The government is borrowing an average of $5 billion daily, leading to concerns about the country’s economic policy. Irresponsible borrowing has been a trend for the past 50 years, escalating rapidly in recent times.
Historically, empires have collapsed due to mismanagement of currency. Endless wars and trade deficits have led to living beyond means, but the high demand for the US Dollar worldwide has prevented a catastrophe so far. Despite this, economists and businesspersons remain concerned. Elon Musk even expressed his worries on a social media platform.
The Economist has termed America’s borrowing as a national concern and a direct threat to the economy. The government is spending more on debt servicing than on national defense, indicating a serious problem. However, the issue of excessive borrowing is not unique to the US alone. Many countries around the world are heavily indebted, leading to inflation and impacting the middle class.
Economists are now looking towards Bitcoin as a possible solution to the problems caused by reckless spending. Major asset manager VanEck predicts that BTC will become a significant part of national reserves in the future. Central banks have handled gold despite losing its official standard status in 1971, using it to bolster confidence in their currencies.
Bitcoin is seen as an economic hedge by economists, with major economies holding significant amounts as seized assets. While adoption as a reserve asset is slow, El Salvador is leading the way by holding a substantial crypto-to-asset ratio. The US under former President Trump showed interest in potentially integrating Bitcoin if he won the 2024 election, indicating a possible shift in policy that could lead to global adoption.
