IMPORTANT POINTS:
- The US national debt has reached an all-time high of more than $33 trillion.
- This debt is 33 times greater than the entire crypto market capitalization.
- There is debate over whether the US Treasury will be able to meet its future debt obligations.
During this week, the US national debt reached its historical maximum value, accumulating a figure of more than 33 trillion dollars. This has led economists to question the ability of the United States to meet its financial obligations to Treasury investors.
On the other hand, it is interesting to note that the US national debt is now more than 33 times greater than the total cryptocurrency market capitalization, which is $1.04 trillion.
This implies that the United States government would need the equivalent of all the money in more than 30 crypto markets to be able to reimburse all the investors who, in some way, are betting on the financial health of the country, effectively lending money to this government to through US Treasury bonds.
Comparing debt to Bitcoin
By converting these securities into Bitcoin (BTC), the dominant cryptocurrency with more than 50% of the entire market capitalization, this debt would be equivalent to 60 times the total supply of 21 million BTC. Furthermore, considering a debt of $254,961 per taxpayer in the US, current figures would indicate that each taxpayer would need to pay about 10 BTC in taxes for the United States to pay off its debts.
What is the US national debt?
The US national debt is the amount of money the federal government owes its creditors. It is a form of borrowing that the government uses to finance its operations and programs. When investors buy U.S. Treasury bonds, they are essentially lending money to the government. However, the government agrees to repay the loan with interest., at a rate determined by the Federal Reserve.
There is some debate among financial experts about whether the US Treasury will be able to meet its debt obligations in the future. The national debt is currently at an all-time high, and some experts fear it is becoming unsustainable.
However, the US government has a long history of paying its debts on time. Additionally, it is the largest economy in the world and has several options for raising money, such as raising taxes or borrowing from foreign governments.
