The US national debt has reached $36.2 trillion, sparking numerous questions about its creditors. This article explores the structure of the debt and discusses the role of Bitcoin as a potential solution.
Debt Structure in the US
Currently, about 75% of the US national debt is owed to American creditors, which may surprise many. The main lenders include:
* Social Security Trust Fund: $2.7 trillion * Federal Reserve: $5.2 trillion * Mutual funds & pension funds: over $4 trillion * Individual Americans buying treasury bonds.
At the same time, there is also a significant portion of foreign creditors, such as:
* Japan: $1.1 trillion * China: $859 billion * United Kingdom: $710 billion * Luxembourg: $367 billion * Ireland: $319 billion.
The Bitcoin Solution
Some crypto advocates are proposing an intriguing idea: what if the US government started accumulating Bitcoin? The key points include:
* The government builds a strategic Bitcoin reserve. * Bitcoin's price continues to rise. * Gains help offset the massive debt burden. * America wins the digital currency race.
El Salvador serves as an example, having made Bitcoin legal tender and accumulating over 5,800 BTC.
Prospects and Questions
Despite the appeal of accumulating Bitcoin, the numbers are telling. To completely eliminate a $36.2 trillion debt, even if Bitcoin were to reach $1 million, the US would need 36.2 million Bitcoins, whereas the maximum supply of Bitcoin that will ever exist is 21 million.
Currently, the US holds about 200,000 BTC, which amounts to only 0.03% of the total debt. This raises the question: is Bitcoin a viable solution for sovereign debt or merely wishful thinking from crypto proponents?
The national debt continues to grow, and Bitcoin keeps climbing in value. This reminds us that Bitcoin might be part of a broader strategy to preserve value amid the financial pressure traditional systems face.
