By CCN Markets: Donald Trump might not like bitcoin, but he's doing an excellent job creating the economic conditions in which the leading cryptocurrency can thrive. Need proof? Just look at the US national debt, which crossed the $22 trillion mark in February and has…
By CCN Markets: Donald Trump might not like bitcoin, but he’s doing an excellent job creating the economic conditions in which the leading cryptocurrency can thrive.
Need proof? Just look at the US national debt, which crossed the $22 trillion mark in February and has ballooned by nearly $400 billion more in the six months since then.
The bad news for fiscal hawks – and the good news for bitcoin bulls – is that there won’t be a reprieve anytime soon.
Despite railing against the national debt during his first presidential campaign, Trump just signed a budget bill that will tack another $1.7 trillion onto the US government’s liabilities over the next decade.
Want to be even more terrified? Take a brief glance at the US Debt Clock and watch those numbers spiral upwards in real-time.
While Trump continues to tout the “phenomenal” bipartisan budget agreement, the government’s debt addiction set the US economy on a dangerous path.
According to the Congressional Budget Office, the rising level of the US national debt is estimated to reduce the average American’s income by $5,000 a year within three decades.
Here’s the bottom line: More national debt means that you’ll get poorer because of irresponsible borrowing.
Thankfully, there’s an escape hatch from this slow-motion trainwreck: bitcoin.
Bitcoin, unlike the US dollar, has a fixed supply. Only 21 million bitcoins will ever be issued, and the keys to 23 percent of the tokens in circulation have reportedly been misplaced already.
Unlike government-run currencies, the cryptocurrency’s value depends entirely on one thing: demand.
It’s not surprising that institutional investors have started piling into bitcoin already to hedge their bets. Risky or not, BTC might just be the best way to protect yourself against the irresponsible borrowing of the US government.
Disclaimer: The views expressed in the article are solely those of the author and do not represent those of, nor should they be attributed to, CCN.