By purchasing Bitcoin, the United States will be able to cover about half of the national debt by 2050

1 year ago 0

Experts have calculated that if the United States begins to buy 1,000,000 BTC over the next 5 years, and the cryptocurrency rate grows by 25% annually, then by 2050 this strategy will cover 44% of the US government debt.

By purchasing Bitcoin, the United States will be able to cover about half of the national debt by 2050

Meanwhile, German MP Joana Cotard warned that the US adoption of legislation creating a BTC Strategic Reserve would have an impact FOMO (fear of missing out) in European countries. This could push Europe to actively adopt cryptocurrencies so as not to be left behind in the new financial race.

US national debt

The U.S. national debt is the debt the U.S. federal government owes to its creditors. This debt is the amount of money the government has borrowed to finance its expenses and obligations.

Main aspects of the US national debt:

  1. Definition and structure:
    • The national debt includes obligations to various creditors, but does not include debts of individual states, corporations, or individuals, even if they are guaranteed by the government.
    • At the end of 2022, the US national debt exceeded the historical mark of $31 trillion, of which $6.82 trillion was intragovernmental debt and $24.29 trillion was public debt.
  2. Historical dynamics:
    • The US national debt as a percentage of GDP has increased significantly from 1900 to 2020. For example, in 1980 it was 32.5% of GDP, and by 2020 it reached 116%.
    • In September 2020, the national debt rose to $26.9 trillion, and by October 2022 it exceeded $31 trillion.
  3. Influence and control:
    • Due to the fact that US government debt is denominated in US dollars, which is the world's number one currency in terms of foreign exchange reserves and monetary transactions, the probability of default is almost zero, with the exception of a purely technical default.
    • Despite the large debt, thanks to low rates, the United States spends no more than $300 billion a year on interest payments on its securities and can accumulate debt indefinitely under current conditions.
  4. Problems and prospects:
    • If interest rates on 10-year bonds rise from the current 2% to 4.5%, it will increase the cost of servicing the debt to $800-900 billion per year in 7-10 years.
    • Interest payments on the national debt could exceed national defense spending by 2029, posing significant financial challenges for the country.

Conclusion:

Государственный долг США является важным показателем финансового состояния страны. Несмотря на его значительный размер, благодаря различным факторам, таким как статус доллара и низкие процентные ставки, вероятность дефолта остается крайне низкой. Однако, рост процентных ставок может существенно увеличить расходы на обслуживание долга, что ставит перед правительством задачу поиска устойчивых финансовых решений.

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