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Former President of the United States and 2024 presidential candidate Donald Trump has floated the idea of using Bitcoin to pay off the massive $35 trillion debt owed by the US government. He unveiled this idea during an interview with Fox Business yesterday. This is yet another move by Trump to align himself with the crypto sector as he heads into a combative last few months before the November election.
The move comes after US Treasury Secretary Janet Yellen raised renewed fears regarding the US Dollar’s future. The largest economy in the world is adding $1 trillion worth of debt every 100 days or so. This has kept inflation high and the US Federal Reserve on its back foot as it grapples with many economic challenges testing its resolve.
Trump Courts the Crypto Community
Trump has been courting the Bitcoin community considerably over the past year or so, a complete flip from his 2019 position when he called the digital currency a scam. Back then, Trump didn’t realize the voting potential of the crypto community in the USA, which is now reportedly 10 million+.
Recently, he has taken several major steps to address the average crypto user’s concerns. They include the negative attitude of the US Securities and Exchange Commission (SEC) towards the digital currency economy, the right to self-custody using private wallets, and high taxes. Trump has promised to address these concerns if he comes to power.
Trump Notches it Up at Bitcoin Conference
He even took one step further when he appeared to speak at the Bitcoin Conference in Nashville, Tennesse. He stated that he favors buying Bitcoin to save the USD and maintaining a strategic stockpile of the cryptocurrency, and he was against selling the multi-billion Bitcoin stock of the US government. He also promised to fire the head of the SEC, Gary Gensler, on day one of his 2025-2029 tenure.
This is beyond what the crypto community has generally demanded from the US government over the years. Given the Democratic party’s Bitcoin skeptic stance, it will be an uphill task for Trump’s opposing party to land the crypto users as Trump continues to lead by multiple digits.
Can the US Pay Off its $35 Trillion Using Bitcoin?
Bitcoin’s current market capitalization is slightly over $1.1 trillion, with approximately $300 billion not in circulation. Given this valuation, eliminating the U.S. national debt of $35 trillion using BTC is currently unfeasible. Nonetheless, due to the U.S. government’s unsustainable borrowing practices and Bitcoin’s deflationary nature, many anticipate the cryptocurrency’s value to increase steadily relative to the U.S. dollar. Consequently, it is theoretically conceivable that a substantial portion of the national debt could be repaid by utilizing a large Bitcoin holding.