The total world debt has increased by $12 trillion to reach $255 trillion by the end of 2019. The latest number came from the Institute of International Finance who updated the Global Debt Monitor.
The combined debt is equivalent to $32,500 for each person on earth. The United States of America alone has over $23 trillion in debts, but Federal Reserve chairman Jerome Powell has said that even though the present debt situation is unsustainable it won't create any critical financial situation.
However, Bitcoin proponents do not agree with the chairman's thinking and believe that the debt situation is getting worse with each passing year, and the fiat system has failed us over and over again. They claimed that the fiat system is not a resilient form of currency and has been manipulated by the central banks and and the Federal Reserve in the past, and thus it won't be long before we face another financial crisis like that of 2008.
The claims seemed to be valid from the fact that government bonds and securities have started to yield negative interest rates, while the US feds have recently printed billions of US Dollars to meet the reserve needs.
It wasn't a coincidence that the Bitcoin white paper came in 2009, right after the financial recession of 2008. In fact, Satoshi Nakamoto hinted that the crisis was one of the motivations behind finding a decentralized form of currency, which won't be controlled by any government or agency and can sustain on its own. Thus with the value of fiat degrading by the day, and world debt rising every year, it's time to ponder whether we really need a new form of financial system.
