Bitcoin (BTC) started the critical week in which the FED will announce its July interest rate decision with an increase due to the influence of Donald Trump, but then experienced a sharp decline.
The US government and Mt. Gox, the US government's national debt exceeded $35 trillion for the first time.
While US debt has increased by nearly $12 trillion since 2020, Rich Rosenblum, co-founder of market maker GSR, said the US's rising national debt is remarkable but could be good for Bitcoin.
Speaking to Decrypt, Rosenblum said that unlike other periods in history, US investors have the opportunity to purchase Bitcoin and cryptocurrencies as a hedge against record national debt.
According to Rosenblum, in the past of the US and other countries, increasing national debt has led to increased inflationary pressures, decreased confidence in traditional fiat currencies and a tendency towards different assets.
“The fact that much of the world, especially the US, is increasingly indebted and is arguably in a ‘debt trap’ is a really good thing for Bitcoin.
Because investors generally turn to alternative assets such as gold in the face of increasing debt and the resulting inflationary environment.
However, unlike other past periods, there is now Bitcoin, called digital gold. Due to its decentralized structure and limited supply, it is seen by investors as a hedge against inflation and currency devaluation.
At this point, investors will turn more to Bitcoin.”
Bitcoin Can Help the USA!
Bitcoin supporter Senator Cynthia Lummis, US senator from Wyoming, also said the following about the US national debt:
“Today, the national debt exceeds 35 trillion dollars.
But a strategic Bitcoin reserve could stop this runaway train and help pay off the national debt for our future generations.”
Today, the national debt has passed a staggering $35 trillion.
A strategic Bitcoin reserve could stop this runaway train and help pay down the national debt for our future generations.— Senator Cynthia Lummis (@SenLummis) July 30, 2024
*This is not investment advice.
