Could Bitcoin Become the 'Savior' of US Debt? $110,000 is Just the Starting Point!
In just two months, the price of Bitcoin has skyrocketed from $74,000 to $111,900, a surge so rapid that it leaves many in disbelief. Many believe this signals the arrival of a bull market, but the reality is different; the real reason lies in the urgent need for the US to resolve its debt crisis.
First, let's focus on the stablecoin legislation recently introduced in the US. This legislation stipulates that if a cryptocurrency issuer wants to obtain a compliant identity recognized by the US, it must be anchored 100% to the US dollar or US treasury bonds. In other words, for every dollar of stablecoin issued, virtual currency companies must use the reclaimed funds to purchase US treasury bonds. Taking the largest stablecoin by market capitalization, USDT, as an example, its asset scale reaches $150 billion, and the issuing company Tether holds as much as $120 billion in US treasury bonds, making bond interest a major source of revenue for Tether. So the question arises: can the stablecoin market become the savior of the massive US debt? The total global trading volume of stablecoins reaches $28 trillion, of which 83% is denominated in US dollars, approximately $23 trillion. In fact, it is not necessary for all $23 trillion to flood into the US bond market to save US debt; addressing the $1.2 trillion interest portion would ensure the orderly operation of the asset chain.
Since last year, the US has been secretly laying out plans in the cryptocurrency field. BlackRock has openly traded virtual currencies, Trump has issued Trump coins, and has pushed for legislation in various states to incorporate Bitcoin and other virtual currencies into the system, with a variety of operations involving cryptocurrency emerging continuously, indicating that cryptocurrency has been politicized. With the implementation of the virtual currency legislation, it is expected that more institutions will join the ranks of stablecoin issuers in the future. It is predicted that the issuance of digital assets may exceed one trillion dollars within the next three years, which undoubtedly opens up a new channel for the US Treasury to automatically purchase US treasury bonds. By then, the market value of Bitcoin is likely to surpass that of gold, and the price of BTC will rise to an unimaginable height! What strategic layout is hidden behind this in the US? How will it reshape the global financial landscape? Let's wait and see.
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