Donald Trump Believes The U.s. Can Pay Off Its Debt With Bitcoin

The United States government adds approximately $1 trillion to its national debt every 100 days, which is raising fears that inflation could spiral out of control.

Recently, U.S. presidential candidate Donald Trump suggested that the government could use Bitcoin or a "crypto check" to address the country's staggering $35 trillion national debt and avert a looming debt crisis.

In an interview with Maria Bartiromo of Fox News, Trump, the Republican candidate for the 2024 presidential election, praised the crypto industry and reiterated his stance that if America does not innovate in the digital asset sector, other countries will. The former president hinted at the potential role of Bitcoin in paying off the U.S. national debt:

"Who knows, maybe we will pay off the $35 trillion [national debt], give them a little crypto check, right? We'll give them a little Bitcoin, and we'll wipe out our $35 trillion."

Trump's statement underscores the potential of Bitcoin, a limited-supply asset, to absorb U.S. dollar inflation and transform into a new system based on blockchain technology.

Bitcoin Could Save the U.S. from Dark Days

As the U.S. government continues to print more money to pay off past debts, devaluing the dollar, Bitcoin's value rises relative to fiat currencies. Considering the ever-increasing $35 trillion national debt, it took approximately 200 years for the U.S. debt to exceed the $1 trillion mark. However, today, the same amount is added to the national debt every three months due to excessive spending.

In June, about 76% of all income tax revenue went towards paying the interest on this debt, making interest payments one of the highest items in the U.S. fiscal budget.

Bitcoin can solve this problem by gradually shifting value from the current U.S. dollar system to the limited-supply digital asset. BTC could prevent a currency collapse similar to what occurred in the Weimar Republic in the early 20th century. As presidential candidate Robert F. Kennedy Jr. recently noted in an interview, building a Bitcoin reserve could help the government pay off the national debt as BTC continues to appreciate in value.

Senator Cynthia Lummis recently proposed a bill to create a Bitcoin reserve in the country to counter the harmful effects of widespread money printing and maintain the United States' financial dominance in global markets and trade. The Wyoming senator aims for the U.S. Treasury to purchase 5% of Bitcoin's total supply and hold the decentralized asset for at least 20 years as a hedge against monetary devaluation and weak fiscal policy by the central bank.

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