Americans Use BTC to Liquidate Debt
$110,000 BTC May Just Be the Beginning
In the past two months, BTC has skyrocketed from $74,000 to $111,900, with a growth rate and speed that are a bit frightening, even somewhat unbelievable. The core issue is not that a bull market has arrived, but that Americans need to liquidate debt.
Let's start with the recent stablecoin legislation in the United States. For any cryptocurrency issuance to gain compliance and recognition in the U.S., it must be 100% pegged to the dollar or U.S. treasury bonds. This means that for every dollar in stablecoins issued, virtual currency companies must use the reclaimed money to buy U.S. treasury bonds. For instance, the world’s largest market cap stablecoin, USDT, has an asset scale of $150 billion, and the issuing company Tether holds as much as $120 billion in U.S. treasury bonds. The interest from U.S. treasury bonds becomes Tether's revenue, so can the stablecoin market save the massive U.S. debt? The total global stablecoin trading volume reaches $28 trillion, of which 83% is denominated in dollars, approximately $23 trillion. In fact, it doesn’t require all $23 trillion to enter U.S. treasury bonds; as long as the $1.2 trillion interest portion is resolved, the asset chain can operate in an orderly fashion.
This matter has been secretly in operation in the U.S. since last year. For example, BlackRock publicly buys and sells virtual currencies, Trump issues Trump coins, and then promotes legislation in various states to include Bitcoin and other cryptocurrencies into the system, followed by advocating for cryptocurrencies, etc. Cryptocurrencies have become completely politicized. With the virtual currency legislation being implemented, more institutions will join the issuance ranks in the future, with issuance numbers potentially surpassing $1 trillion in the next three years, effectively opening a new channel for the U.S. Treasury to automatically purchase treasury bonds. By that time, the market cap of Bitcoin could surpass that of gold, and the price of BTC may reach unimaginable heights once again!
$110,000 BTC May Just Be the Beginning
In the past two months, BTC has skyrocketed from $74,000 to $111,900, with a growth rate and speed that are a bit frightening, even somewhat unbelievable. The core issue is not that a bull market has arrived, but that Americans need to liquidate debt.
Let's start with the recent stablecoin legislation in the United States. For any cryptocurrency issuance to gain compliance and recognition in the U.S., it must be 100% pegged to the dollar or U.S. treasury bonds. This means that for every dollar in stablecoins issued, virtual currency companies must use the reclaimed money to buy U.S. treasury bonds. For instance, the world’s largest market cap stablecoin, USDT, has an asset scale of $150 billion, and the issuing company Tether holds as much as $120 billion in U.S. treasury bonds. The interest from U.S. treasury bonds becomes Tether's revenue, so can the stablecoin market save the massive U.S. debt? The total global stablecoin trading volume reaches $28 trillion, of which 83% is denominated in dollars, approximately $23 trillion. In fact, it doesn’t require all $23 trillion to enter U.S. treasury bonds; as long as the $1.2 trillion interest portion is resolved, the asset chain can operate in an orderly fashion.
This matter has been secretly in operation in the U.S. since last year. For example, BlackRock publicly buys and sells virtual currencies, Trump issues Trump coins, and then promotes legislation in various states to include Bitcoin and other cryptocurrencies into the system, followed by advocating for cryptocurrencies, etc. Cryptocurrencies have become completely politicized. With the virtual currency legislation being implemented, more institutions will join the issuance ranks in the future, with issuance numbers potentially surpassing $1 trillion in the next three years, effectively opening a new channel for the U.S. Treasury to automatically purchase treasury bonds. By that time, the market cap of Bitcoin could surpass that of gold, and the price of BTC may reach unimaginable heights once again!
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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