U.S. national debt nears $38 Trillion, Bitcoin rises as global investors flee dollar collapse
- The US national debt nears $38 trillion, increasing by $6 billion daily.
- Bitcoin and gold become sought-after safe-haven assets as trust in the dollar wanes.
- Bitcoin’s decentralized and fixed-supply nature makes it an attractive alternative to fiat currencies. Gold is the other safe haven.
- Figures like Ray Dalio advocate for a portion of portfolios to be allocated to Bitcoin and gold.
- Trump’s administration has introduced measures to reduce federal spending, but debt continues to grow.
The United States is hurtling toward a national debt milestone of $38 trillion, increasing by an alarming $6 billion daily. As the dollar’s value erodes, investors are turning to safe-haven assets like Bitcoin and gold, which have seen unprecedented highs. This shift highlights the growing concerns over the sustainability of the U.S. debt crisis and the potential for a global reorientation toward alternative currencies. With key figures like Ray Dalio and Larry Fink advocating for asset reallocation, the question arises: Is Bitcoin the antidote to an ailing dollar?
The escalating national debt crisis
The U.S. national debt has surged to $37.9 trillion, rising by $69,890 per second over the past year, according to the US Congress Joint Economic Committee’s debt dashboard. This unprecedented growth has exacerbated financial instability, prompting calls for urgent fiscal measures. Representative Keith Self warned that the debt could reach $50 trillion within a decade if current trends continue. The U.S., once a beacon of economic stability, now faces a looming financial precipice, with spending cuts and deficit reduction becoming central policy imperatives.
The debt dashboard
- Debt growth: The national debt has grown by $2.09 trillion over the past year, with an average daily increase of $5.72 billion.
- Intragovernmental and public debt: Of the total debt, $30.12 trillion is debt held by the public, with an additional $7.31 trillion in intragovernmental debt.
- Personal impact: Each American now carries a debt burden of $110,020, and each household carries $283,098.
Bitcoin as a safe-haven asset
Amidst the national debt crisis, Bitcoin and gold have emerged as preferred safe-haven assets. Bitcoin’s decentralized architecture and fixed supply have drawn significant institutional attention. In January, BlackRock’s CEO Larry Fink, once a Bitcoin critic, projected Bitcoin’s future value could reach $700,000. Ray Dalio, founder of Bridgewater Associates, recommended allocating 15 percent of portfolios to Bitcoin and gold for optimal return-to-risk ratios. These endorsements underscore the growing recognition of Bitcoin as a hedge against fiat currency debasement.
The global debt epidemic
The U.S. debt crisis is not isolated; global debt reached a record high of $337.7 trillion by the end of the second quarter, largely driven by quantitative easing and a weakening U.S. dollar. The International Institute of Finance reports that without fiscal discipline, the situation could spiral out of control. This global shift suggests that the era of fiat currency dominance may be coming to an end, with countries and investors increasingly seeking stable alternatives like Bitcoin.
The Trump administration’s efforts to slow debt growth
The Trump administration took several steps to address the growing debt crisis, including the introduction of the “Big Beautiful Bill Act” in July 2021, which aimed to save over $1.6 trillion in federal spending. Despite these efforts, the debt has continued to increase, with savings partially offset by large-scale spending initiatives. Musk’s tenure with the Department of Government Efficiency yielded significant savings, but the core challenge remains: How can the U.S. stabilize its fiscal footing without stifling economic growth?
Bitcoin’s role in the new economic order
As the U.S. inches closer to a national debt ceiling of $38 trillion, the narrative around Bitcoin and other cryptocurrencies is shifting. Once viewed as volatile and speculative, Bitcoin is increasingly recognized for its potential to address the weaknesses of fiat currencies. The global acceptance of Bitcoin as a reliable store of value marks a pivotal moment in monetary history, offering a decentralized alternative to the looming threats of government overreach and economic instability.
Sources for this article include:
CoinTelegraph.com
Senate.gov
CoinGecko.com
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