US Senate Budget Committee’s National Debt Agenda Eases BTC Bubble Fear
The US Senate Budget Committee has recently released its 2018 proposed budget for approval by the larger congressional body. Pending approval, the prospective budget will then be matched with the House proposed budget and refined for final approval, before ultimately being presented to the White House.
The proposed budget developed by the Senate includes provisions that will dramatically increase federal spending in the year to come, adding a massive $1.5 trillion to the US national debt in just one year. The members of the US Senate Budget Committee have implied that the proposed tax cuts could deliver economic gains, which could potentially offset total debt spending.
After 2019, the proposed budget would begin to reduce non-defense spending, which could provide substantial budget savings over the following decade. The goal of the Senate and the House during this timeframe is to balance the budget.
In light of recent comments made by Patrick Harker- the head of the Philadelphia Federal Reserve Bank- regarding the lack of trust the Fed has in Bitcoin and its continued trust in the US Government, the new budget appears to erode trust rather than build it. While the US Government is able to print new fiat currency and increase the national debt- which currently sits at around $19 trillion dollars- Bitcoin is limited by a fixed market supply.
Many financial analysts have been quick to point out that as long as Bitcoin experiences further widespread adoption and continues to increase in both use cases and liquidity, the value of Bitcoin will inevitably and inexorably increase. While the Federal Reserve prints new fiat currency to maintain a debt ratio, the stability of Bitcoin will enhance its value, easing investor fears regarding a potential Bitcoin bubble.