Trump proposes using BTC to repay $35 trillion national debt—opportunity or fantasy?
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Trump proposes using BTC to repay $35 trillion national debt—opportunity or fantasy?
In theory, it is conceivable to repay a significant portion of the national debt by holding large amounts of BTC.
Navigating Web3 tides with focused insightsSource: zycrypto
Compiled by: Blockchain Knight
Former U.S. President Trump has recently proposed using BTC to repay the government's massive $35 trillion debt.
Yesterday, Trump made this suggestion during an interview with Fox Business, marking another move related to the crypto asset industry ahead of the November election.
U.S. Treasury Secretary Janet Yellen has publicly expressed concerns about the future of the dollar.
As the world's largest economy, the United States adds approximately $1 trillion in debt roughly every 100 days, contributing to persistently high inflation rates. The Federal Reserve appears overwhelmed when facing such significant economic challenges.
Over the past year and a half, Trump has actively courted the BTC community—a sharp reversal from his 2019 stance, when he labeled cryptocurrencies as a scam.
At that time, Trump failed to recognize the potential of the U.S. crypto asset community; today, the community’s voting population has surpassed 10 million.
Recently, he has taken several major steps addressing common concerns among crypto users, including the Securities and Exchange Commission’s (SEC) negative attitude toward the digital currency economy, the right to self-custody via private wallets, and high taxation.
Trump has pledged that if elected, he will resolve these issues—a commitment confirmed by his speech at the 2024 BTC Conference.
Trump stated he supports purchasing BTC to help save the dollar and maintain strategic crypto reserves, while opposing the sale of billions of dollars worth of BTC held by the U.S. government.
Additionally, Trump promised to fire SEC Chair Gary Gensler on the first day of his potential 2025–2029 term.
This goes beyond what the crypto community has long generally demanded from the U.S. government.
Given the Democratic Party’s skepticism toward BTC, Trump continues to lead in voter support. It will be a difficult task for Trump’s opponents to win over crypto asset users.
BTC’s current market capitalization is slightly above $1.1 trillion, with around $300 billion not in circulation. Given this valuation, using BTC to repay America’s $35 trillion national debt is currently unfeasible.
However, due to the U.S. government’s unsustainable borrowing practices and BTC’s deflationary nature, many expect the value of crypto assets to steadily rise relative to the dollar.
Therefore, theoretically speaking, repaying a large portion of the national debt through substantial BTC holdings could become conceivable in the future.
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