The CEO of Coinbase, Brian Armstrong, issued a serious warning about the US national debt and its potential implications. Armstrong's warning comes amid a significant increase in the national debt of the United States, which has now surpassed $36 trillion, indicating the risk of a global economic shift.
He suggested that if US lawmakers do not take measures to address the escalating debt, Bitcoin could become an alternative to the US dollar, making it a global reserve currency.
Armstrong's statements came after the X account "World of Statistics" shared alarming figures about the steady rise in national debt. While expressing a preference for Bitcoin, Armstrong emphasized that a strong United States is key to global stability.
He called on voters to demand that Congress be held accountable and take measures to reduce the budget deficit and address the national debt issue.
National debt reaches record levels
By 2025, the national debt of the United States will reach $36.9 trillion, $2.9 trillion higher than the $34 trillion figure of 2023. Experts are concerned about the rapid rate of increase of this debt, as it could lead to serious consequences in the future.
In recent years, national debt has continuously increased and recently experienced a significant surge. The main reasons for this increase are the costs of social programs, pandemic spending, and the lack of determination among political parties to raise taxes or cut popular programs.
The rapid increase in national debt poses many risks, which could lead to higher interest payments, which are already consuming a large portion of government revenue.
Source: X
According to estimates from the Congressional Budget Office, interest payments on federal debt alone could reach $1 trillion this year and could double by the mid-2030s. This situation could limit the government's ability to fund essential programs, leading to potential economic instability.
Armstrong's warning and the potential of Bitcoin
Brian Armstrong believes that Bitcoin could replace the US dollar due to concerns about the country's uncontrolled debt. He noted that if national debt continues to rise, the dollar's position as a primary reserve currency could be threatened.
According to Armstrong, Bitcoin could assume a global role as a reserve currency if the debt burden continues to rise without any action taken to address it. Over the years, more people have supported Bitcoin as an alternative to traditional reserve assets, with companies like Strategy, Tether, Galaxy Digital, and even countries like the United States and El Salvador engaging in significant Bitcoin purchases.
Bitcoin supporters believe it provides an alternative to fiat currencies due to its transparency, decentralization, and limited supply, protecting against inflation and the control of political forces.
Although some are concerned about the volatility of Bitcoin, cryptocurrency supporters believe it has the potential to protect assets from the common issues seen with traditional currencies.
Reactions from other prominent figures
Armstrong's statements have garnered attention and generated responses from prominent figures in both the cryptocurrency and traditional finance sectors. Influencer in the cryptocurrency industry, Wendy O, has also expressed skepticism about Bitcoin's ability to replace the dollar as a reserve currency due to its volatility.
"Bitcoin will never become a reserve currency due to its volatility. However, it will be favored. A stablecoin… might," Wendy O emphasized, asserting the role of stablecoins in the future of digital assets.
Elon Musk, who has previously voiced strong opinions on the need for financial responsibility, has also joined the discussion. Musk, frustrated with US government spending, criticized Congress for approving large spending bills without implementing sufficient deficit reduction measures.
He also reiterated concerns about rising national debt and the potential long-term consequences, such as the eventual collapse of the US dollar's dominance in the global economy.
Peter Schiff criticizes national debt and government spending
Peter Schiff, an economist and financial commentator, has been a strong critic of US government spending and its long-term economic repercussions. Schiff agreed with Armstrong's concerns about rising national debt but has taken a more direct stance regarding the US dollar and its future stability.
He has long supported sound monetary policies, arguing that government over-borrowing and money printing will ultimately lead to financial collapse.
Source: X
Schiff expressed frustration with the US government's approach to financial management, claiming it is unsustainable. He has repeatedly warned that increasing national debt could lead to a loss of confidence in the dollar. In a recent post on X, Schiff expressed support for Armstrong's view on the risks of rising debt while emphasizing that Bitcoin or other alternatives could be the only viable solution in the long run.
He has continuously argued that the position of the US dollar as a global reserve currency is at risk due to the increasing financial irresponsibility of the country.
https://tapchibitcoin.io/bitcoin-co-the-thay-the-dong-do-la-neu-no-cua-hoa-ky-tang-len.html
