Former President Donald Trump has put forward a unique proposal to address the United States’ $35 trillion national debt by using Bitcoin. In a recent interview with Fox News, Trump suggested giving Bitcoin to China in exchange for paying off the country’s debt. This idea has sparked discussions within the crypto community, but its feasibility comes with challenges.
Currently, the United States government holds 210,392 Bitcoin, valued at $13.3 billion. With Bitcoin trading around $63,000 at the moment, Trump’s plan to pay off the entire national debt using Bitcoin seems ambitious but not impossible.
Various financial institutions have provided price targets for Bitcoin in the coming years, with some estimating prices as high as $1 billion by 2038. If these predictions were to come true, the United States would need a significant amount of Bitcoin to eliminate its debt. For instance, at $1 million per Bitcoin, the country would need 35 million Bitcoin.
However, the practicality of using Bitcoin to erase national debt faces challenges such as Bitcoin’s volatility, regulatory uncertainties, and limited supply. Additionally, recent reports of Genesis Trading selling its Bitcoin to repay debts have caused concerns about potential sell-offs in the market.
While Trump’s idea of using Bitcoin to eliminate the national debt may seem premature, continued strategic accumulation of Bitcoin by the U.S. government could potentially help reduce the debt burden over time. It remains to be seen whether such a radical approach will be adopted by policymakers in the future.