Trump suggests Bitcoin plan to erase $35T debt

Former President Donald Trump proposed an unconventional idea with Bitcoin to address the U.S.’s $35 trillion national debt: using Bitcoin as a payment to China. He suggested this bold move during an interview with Fox News’s Maria Bartiromo, stating, “Crypto is a very interesting thing. It’s very high-level in certain ways, intellectually very high-level. But if we don’t do it, China’s gonna do it… maybe we’ll pay off our $35 trillion debt, hand them a little crypto check, right? We’ll hand them a little Bitcoin and wipe out our 35 trillion.”

• Trump’s proposal has sparked significant discussion in the crypto community, though the feasibility of using cryptocurrency to pay off national debt presents numerous challenges.
• As of now, the U.S. government holds 210,392 Bitcoin, valued at approximately $13.3 billion, making it one of the largest holders of the cryptocurrency. Bitcoin is currently trading at around $63,000.

The idea of using Bitcoin to eliminate the national debt hinges on future price predictions. Financial institutions have varied forecasts, with some like Fundstrat Global Advisors predicting Bitcoin could reach $180,000 by the end of 2024. Others, such as Standard Chartered, project $120,000, while ARK Invest and Fidelity suggest even higher long-term targets. If Bitcoin reaches these predicted values, the amount needed to pay off the debt would vary significantly. However, the practicality of this approach is uncertain due to Bitcoin’s volatility, regulatory challenges, and limited supply of 21 million coins, which makes many of these scenarios unrealistic. Nonetheless, the concept of using Bitcoin to reduce national debt, while currently impractical, opens up interesting possibilities for future financial strategies.