Trump supports Bitcoin to solve the $35 trillion US debt crisis

Former US President and Republican candidate Donald Trump continues to champion Bitcoin as he campaigns for re-election this November.

In a recent statement, Trump suggested that Bitcoin could be helpful in reducing the United States' massive national debt.

Trump has suggested using Bitcoin to pay off the US national debt

In an interview with Fox News' Maria Batiromo, Trump implied that Bitcoin could eliminate America's $35 trillion foreign debt. They argued that this digital resource could benefit the country if approved and supported effectively.

“Who knows? Maybe we'll pay our $35 trillion, give them a little crypto check, right? We'll give them a little bitcoin and spend $35 trillion,” Trump said.

In particular, the US national debt, which is more than 35 trillion dollars, has been a big topic of discussion. The U.S. has accumulated nearly $12 trillion in federal debt as of 2020, according to market analysis platform Kobeisi Letter. Current deficit spending as a percentage of GDP is now at levels seen during World War II.

“In other words, since January 2020, the US has increased the federal debt by nearly $280 billion every month.

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Of course, the idea of ​​using Bitcoin to reduce the national debt is not entirely new. It fits with the Bitcoin Act introduced by Senator Cynthia Lammis, which would create a strategic Bitcoin reserve and authorize the US Treasury to acquire 1 million BTC over five years.

Crypto enthusiasts such as Bitcoin Magazine CEO David Bailey support this theory. Bailey believes Bitcoin could solve the US national debt within a few centuries. However, financial experts are still skeptical. They argue that Bitcoin's market capitalization would need to exceed $35 trillion to make this possible.

“Selling $35 trillion worth of Bitcoin would crash the market and send BTC down to $0. And…this China and other countries want Bitcoin as debt payment…don't people know how the world works?

Meanwhile, Trump's comments followed his keynote address at the Bitcoin 2024 conference in Nashville, calling for a more significant role for digital assets in the US economy. His speech highlighted the interest in the crypto sector and the benefits it can bring.

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The debate comes as Trump's chances of winning the presidential election have plummeted, falling from a peak of 72% in July to 54%. His main rival, Vice President Kamala Harris, is highly regarded and recently received her first major crypto executive endorsement from Uphold's co-founder JP Thiriot.