Peter Schiff, a well-known economist, is skeptical of claims that Bitcoin can solve the US national debt. He argues that even a massive amount of Bitcoin wouldn’t be enough.
The Numbers Don’t Add Up
Some Bitcoin enthusiasts believe that 1 million Bitcoins could eventually pay off the US national debt. Schiff disagrees, pointing out that to achieve this, Bitcoin’s market capitalization would need to increase by over 20,000%!
Currently, with Bitcoin priced around $102,000, one million Bitcoins are worth roughly $102 billion. This is a drop in the bucket compared to the US national debt, which is around $36 trillion. For Bitcoin to cover this debt, its market cap would need to reach a staggering $761 trillion – six times the world’s GDP. Schiff considers this completely unrealistic.
A Growing Problem
Schiff argues that even if Bitcoin’s value were to miraculously reach such heights, the US national debt would continue to grow. The government borrows money constantly, meaning the debt will always be increasing. This makes the idea of Bitcoin solving the debt problem even more improbable. Furthermore, a market cap that high would likely lead to a massive price crash, hurting investors.
Global Adoption? Unlikely
Schiff also questions whether Bitcoin will ever achieve widespread global adoption like fiat currencies. While Bitcoin’s price has risen, it’s far from being a globally accepted currency. Many governments are still resistant to cryptocurrencies, making large-scale adoption unlikely. He concludes that Bitcoin is primarily a speculative asset, its value driven by hype rather than real-world demand.
