Trump Suggests Bitcoin as Solution to $35T National Debt

Currently, 76% of income tax revenue goes towards servicing debt, creating significant budget concerns.

Last updated: August 3, 2024 4:27 PM

Published August 3, 2024 12:07 PM

Last updated: August 3, 2024 4:27 PM

Published August 3, 2024 12:07 PM

In a recent interview with Fox News’ Maria Bartiromo, former President Donald Trump floated a provocative idea: using Bitcoin to tackle the United States’ colossal $35 trillion national debt.

The GOP’s 2024 presidential candidate highlighted the growing crypto industry, underscoring the need for the U.S. to innovate in the digital asset space to stay ahead of global competitors. Trump suggested that perhaps Bitcoin could be part of the solution to the nation’s staggering debt crisis.

As the U.S. government continues to print more money to manage existing debts, the value of Bitcoin has been steadily rising with the dollar. To put the national debt into perspective, it took approximately 200 years for the U.S. debt to reach $1 trillion, but now, this amount is being added roughly every three months due to deficit spending.

Currently, about 76% of income tax revenue is used to service this debt, making interest payments a major budgetary concern.

76% of all personal income tax last month went to servicing the $34 trillion national debt.

How did we get here?

Two men: FDR and Richard Nixon.

Together, they broke the dollar. And put the American people into debt slavery. pic.twitter.com/Emrbt6mspu
— Peter St Onge, Ph.D. (@profstonge) July 26, 2024

“Who knows, maybe we’ll pay off our $35 trillion dollar [national debt], hand them a little crypto check, right? We’ll hand them a little Bitcoin and wipe away our $35 trillion,” Trump remarked, emphasizing Bitcoin’s potential to transform and absorb U.S. dollar inflation through its finite supply and blockchain technology.

Bitcoin offers a potential solution by channeling value from the depreciating dollar into a finite digital asset, possibly preventing a severe currency collapse similar to the Weimar Republic’s plight in the early 20th century.

Robert F. Kennedy Jr. recently echoed this sentiment, suggesting that a Bitcoin reserve could help reduce the national debt as BTC’s value appreciates.

Adding to this, Senator Cynthia Lummis has proposed legislation to establish a Bitcoin strategic reserve. Her bill aims for the U.S. Treasury to acquire 5% of Bitcoin’s total supply and hold it for at least 20 years. This reserve would serve as a safeguard against excessive monetary printing and preserve America’s financial clout in global markets.

Trump’s Bitcoin proposal, combined with Lummis’ strategic reserve, reflects a growing belief in cryptocurrency’s potential to stabilize and revitalize the U.S. economy amid ongoing fiscal challenges.