Bitcoin Becoming an Increasingly Attractive Option as United States Government Debt Skyrockets

• The CEO of Coinbase thinks that Bitcoin will become increasingly mainstream as the USD devaluates due to skyrocketing government debt and budget deficits

The CEO of Coinbase, Brian Armstrong, thinks that although cryptocurrency may be considered ‘funny money’ nowadays, in the future Bitcoin could replace fiat currency, with fiat currency ultimately being viewed as ‘funny money’ due to the devaluation of the USD in response to skyrocketing federal debt and budget deficits.

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"U.S. National Debt Will Rise to 98% of GDP by 2030, CBO Projects" https://t.co/PNniOjpZUV

— Brian Armstrong (@brian_armstrong) January 29, 2020

Armstrong specifically references a Congressional Budget Office (CBO) report which says that the United States government will run a USD 1 trillion deficit in 2020, and this deficit will only get bigger each year over the next decade. Therefore, the national debt which is already in excess of USD 23 trillion will grow by over USD 1 trillion each year.

These projections do not even include Federal Reserve liquidity injections, where the Federal Reserve prints money to keep the stock market afloat. Since September the Federal Reserve has printed USD 390 billion.

Essentially, the tremendous amount of money printing that is required to balance the federal budget could ultimately cause the US dollar to lose significant amounts of purchasing power. On the other hand, Bitcoin cannot be printed at will by any government or organization since it is decentralized, and there will only be 21 million Bitcoins in total once mining is complete.

Thus, if the USD ends up losing value over the next decade due to skyrocketing government debt and money printing, Bitcoin would be in a prime position to become a top alternative.

 

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