The U.S. debt situation raises concerns about a possible hidden default due to inflation and currency devaluation.
The $175 trillion problem no one wants to touch
The official U.S. debt stands at around $36.2 trillion; however, former Coinbase CTO Balaji Srinivasan claims the true debt figure is much higher, reaching $175 trillion when future liabilities like Social Security and Medicare are considered. These off-balance-sheet commitments represent significant financial obligations not reflected in official debt statements.
Worst H1 for the dollar in 50 years
In 2025, the U.S. dollar index fell 10.8% in the first half of the year, marking its worst performance since 1973. The dollar has also weakened against major currencies, raising concerns over recent trade policies and potential rate cuts from the Federal Reserve.
Bitcoin, gold, and hard-capped assets
As the dollar weakens, interest in assets like Bitcoin and gold is rising. Bitcoin ETFs have attracted over $135 billion in less than a year, reflecting growing participation from institutional investors. Gold retains its significance as central banks continue to increase their holdings of the metal.
The challenges posed by escalating debt and a declining dollar suggest potential instability in the U.S. economic system. The rising interest in alternative assets such as Bitcoin and gold may indicate changing investment trends amid increasing financial pressures.
