Recently, US President Trump stated at a gathering that cryptocurrency could be used to alleviate the ballooning US national debt. With the US national debt now exceeding $38 trillion, Trump’s remarks have drawn significant attention.
Trump has stated on multiple public occasions, “Maybe we could pay off the $35 trillion in US debt with cryptocurrency.” Although this is merely a directional idea and has not formed a concrete policy, it does reflect the thinking of some who hope to use crypto assets like Bitcoin to solve the United States’ massive national debt problem.
However, to use Bitcoin as a tool to pay off the US national debt, its price would need to reach an astonishing level. Based on the current circulating supply of approximately 19.93 million Bitcoins, each coin would need to be valued at nearly $1.9 million to fully cover the $38 trillion in US debt.
Moreover, based on the 326,400 Bitcoins that the US government currently holds, the price per BTC would need to soar to approximately $116.5 million to fully cover it. This figure is over 1,000 times higher than Bitcoin’s current actual price of around $110,000. If Bitcoin’s price were to reach such a high level, it would trigger a series of unimaginable consequences. At that point, BTC’s total market capitalization would reach approximately $230 trillion, even exceeding the current total global GDP. Any attempt to sell BTC at such a price would cause liquidity to collapse instantly, ultimately leading to chaos across the entire market.