Investors are turning to safe-haven assets, such as Bitcoin and gold, as the US national debt is nearing a record-breaking $38 trillion.
America’s national debt, currently $37.9 trillion, has risen by $69,890 per second — or nearly $4.2 million per minute — over the last year, according to the US Congress Joint Economic Committee’s debt dashboard.
That equates to a staggering $6 billion per day, larger than the gross domestic product of over 30 countries, according to data from Worldometer.
Change in America’s national debt over the last 12 months, measured in certain time intervals. Source: US Congress Joint Economic CommitteeUS Representative Keith Self said on Friday that the debt tally is set to surpass $38 trillion in weeks and possibly even $50 trillion within a decade, urging for imminent action to be taken.
At current rates, the US is expected to surpass $38 trillion in 20 days.
Investors flock to Bitcoin and gold
Last week, JPMorgan touted Bitcoin (BTC) and gold as the “debasement trade” amid increased uncertainty in the dollar.
It came as Bitcoin hit a new all-time high of $125,506 on Saturday, while gold hit a fresh high of $3,920 on Sunday.
Bitcoin’s fixed supply and decentralized nature have drawn increased institutional attention, with the likes of BlackRock CEO Larry Fink — once a Bitcoin critic — stating in January that Bitcoin could hit $700,000 on currency debasement fears.
Ray Dalio, the founder of the world’s largest hedge fund, Bridgewater Associates, recommended in July that investors allocate 15% of their portfolios in hard assets like Bitcoin or gold to optimize for the “best return-to-risk ratio.”
It’s not just America, says Dalio
At the time, Dalio said other Western nations like the UK would face the same “debt doom loop” issue and that their currencies would continue to underperform relative to Bitcoin and gold, which he described as an “effective diversifier.”
Reuters reported late last month that global debt grew to a record high of $337.7 trillion by the end of the second quarter, fueled by more quantitative easing and a softer US dollar, it said, citing data from the Institute of International Finance.
Trump’s effort to slow US debt
Cutting federal spending and reducing the deficit have been cited as policy priorities under the Trump administration.
For a few months, the Trump administration brought in Tesla CEO Elon Musk to assist with the Department of Government Efficiency to reduce spending, saving $214 billion so far.
Related: Bitcoin ETFs kickstart ‘Uptober’ with $3.2B in second-best week on record
However, President Donald Trump signed what he described as the “Big Beautiful Bill Act” in July, seeking to save more than $1.6 trillion in federal spending.
Musk left as his 130-day limit as a special government employee neared its completion, while his previously strong relationship with Trump took a turn for the worse.
However, implementing that bill helped push US debt past $37 trillion and is expected to cost $3.4 trillion over the next 10 years.
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Source: https://cointelegraph.com/news/us-debt-nearly-38-trillion-strenghtening-bitcoins-case?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
