The U.S. public debt policy is increasing beyond $37 trillion
In just the past decade, the U.S. public debt has doubled, from $18 trillion to over $37 trillion. This raises concerns about inflation, currency devaluation, and the ability to maintain the stability of the national economy in the long term. This phenomenon poses a serious problem regarding the risk of default and its negative impact on the global financial system.
Focus on the debt burden and its impact
Every day, the U.S. spends about $4.27 billion to pay interest on this massive debt. Without changes, interest payments will occupy a large portion of the national budget, limiting resources for areas such as social welfare, national defense, and important public services. Analysts warn that the risk of default is imminent.
Expert opinions
Elon Musk on platform X noted that the United States is currently virtually bankrupt, as interest payments account for 25% of the budget revenue. Economist Peter Schiff even asserted that the country has defaulted, only it is not clearly visible. This situation drives the search for alternative solutions to protect the national finances.
Why Bitcoin is the optimal solution in the face of the debt storm
In the context of rising public debt, Bitcoin becomes a 'protective asset' with real value. Each U.S. resident currently bears an average public debt of over $106,000, totaling more than $323,000 per tax slave. Meanwhile, the budget deficit has exceeded $2 trillion, with spending budgets over $7.1 trillion.
Bitcoin price volatility and investment opportunities
In the past decade, the price of Bitcoin has risen from under $500 to over $111,000, demonstrating the strength of cryptocurrency in resisting financial political mandates. This is not merely a price chart but also evidence of Bitcoin's value reserve strength during economic instability.
Bitcoin as a lifebuoy
Raoul Pal, founder of Real Vision, describes Bitcoin as a 'lifesaver' during times of global financial turmoil. As central banks continue to print money, Bitcoin's fixed supply becomes increasingly attractive. Investors believe that Bitcoin not only hedges against inflation but also appreciates in value over time.
Stablecoin: An unexpected partner in the fight against debt
While Bitcoin is seen as a hedge option, stablecoins can also play a role as a tool to mitigate the public debt burden. The U.S. Secretary of the Treasury recently proposed stablecoins backed by U.S. government bonds, increasing the demand for these bonds to reduce the government's borrowing costs.
New policies and legal trends
The GENIUS Act, aimed at regulating stablecoin activities and mandating the holding of government bonds, has passed the Senate and is now awaiting a vote in the House of Representatives. This opens up opportunities to reduce the debt burden and promote the development of a more sustainable cryptocurrency market.
Long-term potential and challenges
In the context of continuously increasing public debt, policymakers, investors, and citizens all need to look towards breakthrough solutions. Cryptocurrencies, especially Bitcoin and stablecoins, are being seen as key tools to mitigate global financial risks in the long term.
Source: https://tintucbitcoin.com/khung-hoang-no-my-va-crypto-giai-phap/
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