America is bankrupt and it suits Bitcoin

US government debt has increased by $2.7 trillion over the past 12 months. Where the debt was $31.4 trillion a year ago, it now stands at $34.1 trillion. In my view, the growing US national debt is one of the main reasons for the bullishness of the Bitcoin price.

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'Don't worry about the national debt'

If we are to believe Janet Yellen, the current US Treasury Secretary, there is no reason to worry about the more than $34 trillion national debt.

Funnily enough, the same Janet Yellen had a completely different message on this issue. At the time, he exclaimed, “The $20 trillion debt should keep people up at night.” What makes this point even more interesting is that at the time (2017) US government debt was much lower than it is now ($20 to $34 trillion).

Later in 2018, Yellen said the US government's rising budget deficit was unsustainable. “If I had a magic wand, I'd raise the line.”

Now, on September 18, 2023, Forbes shares an article in which the same Yellen says she doesn't care about the national debt, which has nearly doubled since she did.

Should we worry or not? The following graph of annual interest costs answers that question.

Why we should care about the US national debt

The graph below clearly shows why we should be concerned about the US national debt. What this graph shows is that the interest costs the US government has to pay on its debt are rising.

They currently spend $1 trillion annually, almost 25 percent of the total budget (!).

No wonder the US runs into huge deficits every year, which ensures that the debts continue to grow. By 2030, the United States is expected to spend $3 trillion a year in interest costs. These are numbers that don't really mean anything and are completely unsustainable.

The above data shows how dire the situation in America is right now. For every $1 increase in gross domestic product (GDP), the government deficit increases by $1.55 and the debt increases by $2.50.

In other words: the US government needs more and more money to keep the economy going and that suits the price of Bitcoin. While the US dollar continues to lose purchasing power, Bitcoin's deficit increases with each halving.

More and more people will start searching for alternatives and Bitcoin will become the ultimate destination for many. For me, Bitcoin is my primary storage tool.

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