Former U.S. President and Republican candidate Trump Continues to Support Bitcoin During Re-Election Campaign
As the November re-election campaign approaches, former U.S. President and Republican candidate Trump has once again expressed his advocacy for Bitcoin. In a recent statement, Trump mentioned that Bitcoin could play a significant role in addressing the massive U.S. national debt.
Trump’s Proposal to Utilize Bitcoin for U.S. Treasury Debt Repayment
During an interview with Fox News’ Maria Bartiromo, Trump put forward the idea that Bitcoin could potentially erase the United States’ $35 trillion foreign debt. He emphasized that with effective adoption and support, digital assets like Bitcoin could bring substantial benefits to the country.
“Who knows? Maybe we can pay off the $35 trillion in foreign debt and give them a check in cryptocurrency, right? Why don’t we spend the $35 trillion and buy a little bit of Bitcoin?” Trump suggested.
The escalating U.S. Treasury debt has become a pressing issue, especially as it has exceeded $35 trillion. Since 2020, the United States has accumulated approximately $12 trillion in federal debt, leading to deficit spending levels comparable to those seen during World War II.
“In other words, the United States has added around $280 billion to its federal debt each month since January 2020, translating to roughly $105,000 in federal debt per U.S. citizen,” noted the market analysis platform Kobeish Letters.
The Debate Surrounding Bitcoin’s Role in National Debt Reduction
The notion of utilizing Bitcoin to reduce the national debt is not a new concept. Senator Cynthia Lummis introduced a Bitcoin bill that aims to establish a Bitcoin strategic reserve and authorize the U.S. Treasury Department to acquire 1 million Bitcoins within five years.
Cryptocurrency enthusiasts, including Bitcoin Magazine CEO David Bailey, are supportive of this idea. Bailey believes that Bitcoin has the potential to resolve the U.S. national debt over the span of a few years. However, financial experts remain skeptical, pointing out that this strategy would only be viable if Bitcoin’s market capitalization surpasses $35 trillion.
One investor questioned, “Don’t people understand how the world operates?”
Trump’s Advocacy for Bitcoin in the Economy
Trump’s endorsement of Bitcoin comes after his keynote speech at the Bitcoin 2024 conference in Nashville. He emphasized the importance of digital assets in the U.S. economy and highlighted the potential benefits they could bring. However, despite the growing interest in the cryptocurrency space, Trump’s chances of winning the presidential election have decreased to 54% from a peak of 72% in July.
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