The increasing US National Debt is a subject that is hard to ignore, especially when fresh milestones are crossed, and the conversation leads itself to inflationary pressures, interest rates, and the long-term economic outlook. For a lot of investors, this series of events makes bitcoin seem more attractive as a hedge against declining monetary value. The concept of decentralized money that cannot be printed or manipulated by any government sounds appealing in a time of uncertainty.
However, we shouldn't overthink this relationship. Simply because national debt is increasing doesn't mean that crypto will skyrocket. Markets are complicated, and they are dependent on more than simple numbers on a balance sheet.
I do watch these types of things, but I don't live and die by the movements of our national debt level. Fear is sometimes the worse way to deal in the short term and doesn’t always communicate long-term value.
If you are thinking about how the level of debt might relate to your investments, slow down and get a broad understanding first.
DYOR - Do Your Own Research.
