According to a recent market report, the U.S. federal debt has skyrocketed, marking a significant increase over four years. As a ratings platform, Weiss Ratings reported that interest levels make up 50% of the federal deficit. “Total U.S. federal debt is $34 trillion. That’s an increase of $11 trillion in just four years, the fastest pace in history. At roughly $1 trillion a year, interest alone now accounts for half the federal deficit.” The report read. Speaking on the dangers of the new development in the U.S. economy, Jamie Dimon, the CEO of JPMorgan Chase, brought attention to the emerging U.S. debt market crisis. “It’s a big deal, it is a real problem,” he remarked. Bitcoin as an antidote to economic collapse In a follow-up response, Weiss’s Crypto rating outlined a bullish scenario that could unfold if the current market pattern continues. Should the Treasury market collapse with the introduction of new issuance, the Federal Reserve system could kick off a fiat currency printing spree; a move that could position Bitcoin and other crypto assets as better alternatives. “The moment the Treasury market cracks under a mountain of new issuance, the Fed will ride to the rescue to buy U.S. government debt. They will print with reckless abandon, debase the currency, launching crypto (and other assets) straight into the stratosphere.” The report read. Cryptocurrencies like Bitcoin are increasingly considered alternative assets capable of combating inflation for traditional market players. Notably, Ryan Cohen, the CEO of GameStop referred to Bitcoin as an inflation hedge against traditional currencies. Cohen, who has successfully snapped up $512 million worth of Bitcoins is quoted saying; “If Bitcoin becomes digital gold, its upside will be even greater.”
