Global asset manager BlackRock has voiced its support for Bitcoin as a potential safeguard against the growing US federal debt, citing the digital currency’s ability to act as a hedge against fiscal, monetary, and geopolitical risks. This move follows similar proposals by former President Donald Trump and Senator Cynthia Lummis, who see Bitcoin as a solution to the nation’s $35 trillion debt.
Pierre Rochard, VP of Research at Riot Platforms, defended Senator Cynthia Lummis’ BITCOIN Act, which proposes a U.S. Bitcoin reserve. He addressed common criticisms, arguing that Bitcoin’s value is backed by its fundamentals and decentralized nature, making it a valuable asset for the nation. The Act aims to strengthen the U.S. dollar and reduce national debt.
The United States is grappling with a staggering national debt of $34.5 trillion, which is triple that of the eurozone. This debt burden is expected to continue growing, reaching 134% of GDP by 2029. Rising deficits and interest payments are raising concerns about a potential fiscal crisis. The situation is particularly concerning as the government’s annual deficit is still high despite strong economic growth, and interest expenses are projected to increase significantly in the coming years.
