The US national debt crisis continues to rise, as the total debt owed has now surpassed $35 trillion according to new fiscal data. The United States debt has grown at an unprecedented rate over the past two years, as the country recovers from growing inflation and the COVID-19 pandemic. With speculation of a Bitcoin reserve being established in the US, could Bitcoin adoption grow due to the ongoing US Debt crisis?
It is possible that Bitcoin could see a new all-time high due to the growing US federal debt. The total debt has surpassed an average of $105,000 for every living person in the country. Matt Bell, the CEO of Turbofish, believes that Bitcoin could become a haven for investors in a currently tumultuous US economy. “The recent news of the US national debt reaching the record high of $35 trillion highlights growing concerns around the sustainability of traditional fiat currencies,” he said in a statement. “This situation stresses the importance of Bitcoin as ‘hard money’ — a decentralized and deflationary asset that offers a hedge against currency devaluation.”
Bitcoin is undoubtedly one of the most robust cryptocurrencies out there. The token is dubbed the king of cryptocurrencies, and rightfully so, because of its massive market momentum and popularity. It has also picked up steam on a regulation level, with Bitcoin ETFs now available on the open market for anyone to invest in. The debate of BTC and other cryptocurrencies even matters in government, with crypto being a talking point in the US election and up for debate in the Senate.
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Could Bitcoin Explode Amid US Debt Crisis?
US Senator Cynthia Lummis has proposed establishing a “Bitcoin Purchase Program” of up to 200,000 BTC a year over five years. The “Bitcoin Act of 2024,” would “establish a decentralized network of secure Bitcoin storage facilities distributed across the U.S.” It would select the locations for the vaults “based on a comprehensive risk assessment, prioritizing geographic diversity, security, and accessibility.” The senator believes that the leading cryptocurrency could be a savior for the failing US Dollar, and become a strong reserve currency for the US government.
Another supporter of this concept may also become the US president this fall. Earlier this year, rumors swirled that Donald Trump was looking into a Bitcoin reserve. He was reportedly exploring the idea of making BTC a reserve asset. Additionally, he expressed the necessity of the US to outpace China in terms of crypto adoption.
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While the US could benefit from establishing Bitcoin as a reserve currency, the coin itself could reap explosive benefits. BTC is already back on the climb towards $70,000 and hit a new all-time high in March 2024. Such an event as the establishment of a Bitcoin reserve in the US could see the asset shoot even higher.