United States government debt hits new record high

US government debt hit a new all-time high this week, adding another $54.9 billion over the past five days. With that, the total US debt is about $32.7 trillion. This creates a debt of $253,686 per taxpayer.

The United Nations is concerned about the level of global debt

Since US government debt passed the $32 trillion mark on June 16, nearly $700 billion of additional debt has already been incurred. At that rate, the United States would add $4.2 trillion a year to that figure.

In that sense, it is not surprising The United Nations is concerned About the global debt mountain. According to the United Nations, global government debt will reach $92 trillion by 2022.

That number is a 500 percent increase since 2000. Secretary-General António Guterres said the debt crisis is hitting developing countries particularly hard.

“On average, African countries borrow four times more than the United States and eight times more than rich European economies. A total of 52 countries, or 40 percent of Third World countries, are in serious debt trouble,” Guterres said.

What does this mean for Bitcoin?

Satoshi Nakamoto created Bitcoin as an answer to the traditional financial system. Bitcoin is a form of money that is beyond the control of governments and is inflation resistant.

There will be a maximum of 21 million bitcoins in circulation and that will be the limit eventually. This is in contrast to the debt-based fiat system we currently have.

As such, Bitcoin price should theoretically benefit from this growth, certainly in the long run.

The system takes a lot of credit to run, and the complete lack of Bitcoin is very interesting. In principle, this is a positive development for the value of Bitcoin.

Free 10 euro worth of crypto

Are you looking to enter the crypto world and buy Bitcoin or another crypto? We have good news for you! Thanks to a special agreement between Newsbit and Bitvavo, one of the most accessible and user-friendly crypto exchanges in Europe, our readers get an exclusive offer.

If you register with Bitvavo via the button below, you will receive 10 euros for free, but you will not pay any trading fees for your first 10,000 euros.