mxx1's avatar

Debt

The Donald has suggested paying off the $35 trillion US national debt with bitcoin.

But they would have to pay for said bitcoin first, so unless they have $35 trillion in bitcoins already sitting around, I can’t see how this would work. Besides the total value of all bitcoin is currently just over $1 trillion, so there isn’t enough.

So Donald is just click bait spit balling, as usual.

But it is an intriguing idea….

  1. The US gubment could create a new crypto-coin
  2. Then they could pay off all their debt in this new coin by forcing their creditors to take it (or else). The usual way the US does this is by threat of arms.
  3. And then, the market cap of new coin would be worth exactly the debt that was written off, until it wasn’t.

I love the idea of replacing artificial govt printed scrip (cash) with artificially created govt crypto. It’s just a one-for-one el-swappo, except all risk is transferred from the US govt to the current creditors.

The real benefit of the plan is that the crypto currency can’t be fucked with by the US or any other government; supply is fixed.

The future would be economically dry when the default global currency is such a crypto.