Could Bitcoin Profit from the Unprecedented Rise in Global Government Debt?

Global government bond issuances hit a record $18 trillion last year, nearly doubling since 2019 due to high public spending and elevated interest rates. Developed countries accounted for $16 trillion of this debt. As the quantity of government debt increases, it needs to be refinanced, adding pressure to bond markets. Investor demand for long-term government debt has shown signs of weakening, as illustrated by recent poorly received bond auctions in Japan and the US.

Additionally, warnings of unsustainable deficits, particularly in the US, have raised concerns about potential insolvency. In this scenario, Bitcoin and other store-of-value assets could potentially benefit as investors may seek alternative places to store capital if government debt becomes less attractive. Bitcoin's decentralized nature also makes it immune to political manipulation or debt monetization, further solidifying its appeal.