As America’s national debt climbs past $37 trillion, concerns are growing about the country’s financial future. Just ten years ago, the debt stood at $18 trillion. Now, it has more than doubled, raising serious worries about inflation, currency devaluation, and the long-term stability of the economy.
Meanwhile, some experts believe Bitcoin and even stablecoins might offer some real solutions.
Let’s see how!
U.S. Double Down On Debt
The U.S debt is growing by about $4.27 billion every day, and it has reached $37 trillion so far. If nothing changes, experts warn that interest payments alone could swallow up the entire budget, leaving little for things like Social Security, defense, or public services.
Recently, Elon Musk on X said the U.S. is on the edge of “de facto bankruptcy,” with interest payments alone eating up 25% of government revenue.
Meanwhile, economist Peter Schiff went a step further, claiming the U.S. is already bankrupt—it’s just not obvious yet.
Why Bitcoin Is the Only Solution?
Analysts are now calling Bitcoin a protective asset, especially as each U.S. citizen indirectly holds over $106,000 in national debt. That number shoots up to $323,000 per taxpayer. With a federal deficit of $2 trillion and spending of $7.1 trillion.
However, over the past decade, when U.S debt doubled down, Bitcoin price has jumped from under $500 to more than $111,000. For many, this isn’t just a price chart; it’s proof that Bitcoin is becoming a financial lifeline.
Raoul Pal, founder of Real Vision, compared Bitcoin to a “life raft” in these uncertain times. As central banks print more money, Bitcoin’s fixed supply becomes even more attractive. Pal believes Bitcoin not only protects against inflation but also grows in value as more people adopt it.
Stablecoins: A Surprising New Ally?
While Bitcoin acts as a hedge, stablecoins may play a different role — one that could help reduce the debt itself.
U.S. Treasury Secretary Scott Bessent recently suggested that Stablecoins are backed by U.S. Treasury bonds. As the stablecoin market grows, so will the demand for these bonds, possibly lowering government borrowing costs.
The GENIUS Act, which aims to regulate stablecoins and mandate Treasury bond holdings, has passed the Senate and awaits a House vote.
However, America’s growing debt is forcing everyone governments, investors, and everyday people to look for new solutions.
