US government debt is through the roof at the time of writing. Government debt increased by $57.2 billion in four days, according to new data from the US government’s FiscalData site. As of June 16, $32 trillion of debt had already been committed and about $590 billion had been added in a month.
Is inflation the only way?
In a new interview with Bloomberg Television Stilt Billionaire David Rubenstein says America can only overcome this problem with inflation, which he says will increase the gap between rich and poor.
“When I left the White House under President Carter, the total debt of the United States was $1 trillion, $800 billion. Now it’s about $32 trillion. There’s no way out but inflation,” Rubenstein said.
According to Rubenstein, this is a particularly bad development for low-income people. After all, they are much less capable of processing inflation than the wealthier part of the population.
Also, the billionaire anticipates a clash between the haves and the have-nots. In the Western world, according to Rubenstein, there is a conflict between the elders and the younger.
What does this mean for Bitcoin?
Basically, the US National Debt is pure advertising for Bitcoin. It’s true that debt has increased by nearly $590 billion in the past month. This seems like an intractable problem and perhaps inflation is the only solution.
If so, it would be very attractive for people to switch to a complete scarcity of Bitcoin.
While more and more US dollars are needed to meet the mountain of government debt that is reducing the dollar’s purchasing power, Bitcoin is actually becoming increasingly scarce.
Another Bitcoin halving is scheduled for April 2024, at which time the block subsidy for Bitcoin miners will drop from 6.25 to 3.125 Bitcoin per block. This cuts Bitcoin’s inflation in half, while only increasing the US dollar.
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