Bitcoin as an escape from the debt trap? Trump presents daring idea

In a recent interview with Maria Bartiromo of Fox News, former U.S. President Donald Trump surprised with an innovative proposal to tackle the enormous national debt of the United States. Trump entertained the idea of using Bitcoin or a "crypto check" to settle the national debt, which stands at an impressive $35 trillion. "Who knows, maybe we pay off our $35 trillion debt, give them a little crypto check, right? We give them a little Bitcoin and pay off our $35 trillion," Trump said. This unusual idea arises against the backdrop of the ongoing devaluation of the U.S. dollar, driven by the immense money creation by the government to service existing debts. This practice has led to a steady increase in the value of Bitcoin compared to fiat currencies. To illustrate: while it took roughly 200 years for the U.S. to accumulate a debt burden of $1 trillion, this amount is now added every three months through deficit spending. A point highlighting the urgency of the problem: In June, around 76% of all income tax revenues were used to pay interest on the national debt, making it one of the largest expenditures in the U.S. budget. Bitcoin, with its limited supply, appears to some as a potential solution to this issue. Independent presidential candidate Robert F. Kennedy Jr. agreed in this direction, suggesting the establishment of a Bitcoin reserve to manage national debt, as the value of Bitcoin increases over time. Recently, Senator Cynthia Lummis has also introduced a bill to create a strategic Bitcoin reserve in the United States. Her proposal aims to counter the negative effects of excessive money creation and secure the financial supremacy of the U.S. in global markets and trade. The senator from Wyoming plans for the U.S. Treasury to acquire 5% of the total Bitcoin supply and hold this decentralized asset for at least 20 years.