The federal government's outstanding public debt has exceeded $23 trillion for the first time in history.
In February this year, the debt passed $22 trillion for the first time and in just 10 months, $1 trillion has been added to it.
As evident from this, growing budget deficits have been added to the nation's debt at a speedy rate since President Donald Trump took office. Since Trump's inauguration, when the debt stood at $19.9 trillion, it has grown 16%.
This number is now meaningless https://t.co/75OXWatWQt
— Alistair Milne (@alistairmilne) November 1, 2019
“There's now 23,000,000,000,000 reasons to buy bitcoin,” shared crypto enthusiast Rhythm Trader.
Of this $23 trillion figure, about $17 trillion belongs to the public debt, a number typically used in calculating the nation’s debt burden. The remaining $6 trillion comes from loans within the government bodies.
Still, $23 trillion is a milestone.
“Piling on debt like this is especially unwise and unnecessary in a strong economy,” said Michael A. Peterson, CEO of the fiscally conservative Peter G. Peterson Foundation. High levels of debt can push up interest rates, weigh down budgets, and “crowd out” private borrowing.
The deficit for 2019 is about $1 trillion and is only expected to grow in the coming years.
Central Bank to go Bust and all Fiat Money will Die
This mounting debt is not exactly the fault of any one President but rather the economic system.
And this is why Bitcoin matters. With its fixed supply and anti-inflationary mechanism, it is the is one of the best hedges against this situation.
Back of the napkin math.
US debt is at 23 trillion dollars.
If the US govt bought 2.3 million Bitcoins while simultaneously pumping btc's price to about $10m per btc, they could literally pay off the entire national debt.
Imagine, $btc solidifies Trump's legacy forever.
— shiggidy (@shiggidy) July 13, 2019
The situation will only get worse when the next recession comes and the US finds it much more difficult to pay back. As such, they would have to turn to the Federal Reserve to print more dollars. And that would lead to an increase in inflation.
When this debt bubble pop, ShapeShift CEO Erik Vorhees predicts that it will lead to a crypto boom.
When the next global financial crisis occurs, and the world realizes organizations with $20 trillion in debt can't possibly ever pay it back, and thus must print it instead, and thus fiat is doomed… watch what happens to crypto.
— Erik Voorhees (@ErikVoorhees) November 8, 2018
Bitcoin, however, is an alternative monetary system, a digital gold, an antithesis of fiat money. Unlike the dollar and other fiat money, the flagship cryptocurrency has a fixed supply and can’t be printed endlessly.
On Nov. 1, Max Keiser, a crypto bull and entrepreneur in an interview with Hackernoon said central banks would contribute to Bitcoin success.
“It bottomed when the Fed signaled ‘Infinite QE’ recently at around $3,300 BTC. Global Central Banking is about to go bust. […] All fiat money will die.”