A renowned economist disagrees with Bitcoin supporters who claim that cryptocurrency could someday solve the national debt of the United States.
Economist Peter Schiff expressed his skepticism on the bold declaration of what he called “Bitcoin pumpers” that 1 million BTC can settle the country’s national debt, saying that even with that number of cryptos, it will still be insufficient to address the country’s enormous government debt.
Not Enough To Pay US Debt
Schiff does not believe that 1 million Bitcoin is the answer to paying off the US national debt, arguing that to do that, the crypto needs to attain an unrealistic increase of over 20,000% in its market capitalization.
“#Bitcoin pumpers claim that if the U.S. buys 1 million Bitcoin, someday we will be able to use that Bitcoin to pay off the National Debt,” Schiff said in a post.
He explained that 1 million coins of the firstborn cryptocurrency would not be adequate to settle the country’s massive debt of around $36 trillion.
#Bitcoin pumpers claim that if the U.S. buys 1 million Bitcoin, someday we will be able to use that Bitcoin to pay off the National Debt. For 1 million Bitcoin to equal today’s $36.25 trillion National Debt, Bitcoin’s market cap would be $761 trillion, 6x larger than world GDP!
— Peter Schiff (@PeterSchiff) December 13, 2024
As of press time, Bitcoin is traded at $102,286 per coin. At the current price, one million Bitcoins would amount to over $102 billion, a huge amount but still meager compared to the enormous national debt of $36.25 trillion.
The economist said that Bitcoin could only make this happen if its market capitalization surged by over 20,000%, doubting if BTC could ever reach that exponential growth.
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Author: Christian Encila
