The US government currently pays $1.8 billion a day in interest on their federal debt. To put that number in perspective: three years ago that was still $900 million a day. The U.S. national debt increased from $23 to $33 trillion during that period.
What does this mean for the US Dollar and does it bode well for the price of Bitcoin?
How is America going to solve this problem?
The big question is how the US government will solve this problem. For now, no solution seems to be available, and the annual interest costs continue to rise.
Meanwhile, the government's debt ceiling has been lifted until 2025, allowing it to take on unlimited debt in the coming months.
This probably means that the US government will take on a lot of debt in the near future and this seems to be a positive development for the Bitcoin price.
Why?
Because it makes Bitcoin's absolute shortfall of 21 million units even more attractive compared to the US dollar.
2024 looks very bright for Bitcoin
This may be the most important economic development in the world right now… and the colossal national debts are spiraling out of control.
The past year has been dominated by central banks raising interest rates to fight inflation. While governments will dominate the coming years, they will do everything they can to lower interest rates so they can still pay off their debts.
In that sense, it's an interesting time for Bitcoin. Especially since spot bitcoin ETFs are about to launch in the US, and certainly the next bitcoin halving, which is scheduled for April 2024.
Heading for a new high in 2024? Based on all these developments, it is definitely possible.
“Passionate analyst. Thinker. Devoted twitter evangelist. Wannabe music specialist.”
More Stories
From Concept to Creation: Designing Your Signature Acrylic Nails
How to Care for Your Marginated Tortoise Year-Round
Biden and Xi want to sit down one last time