Republican

Donald Trump

Biden

<ul>
 <li>Trump suggests using Bitcoin and crypto checks in a FOX Business interview to address U.S. fiscal challenges.</li>
 <li>Schiff argues Trump’s Bitcoin proposal aims to attract political support from cryptocurrency enthusiasts, not solve debt issues.</li>
</ul>
Financial commentator Peter Schiff has criticized a proposal by Donald Trump, which suggests that Bitcoin could be used to repay the $35 trillion U.S. national debt. This criticism emerged after Trump, a candidate for the Republican Party, proposed incorporating the cryptocurrency as a tool to manage the country’s financial obligations.
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 This weekend's <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Bitcoin</a> crash is an example of why Bitcoin will never be a reserve asset for any major government or central bank. A reserve asset must have relatively low volatility. It needs to be readily sold when needed. It can't crash more than assets it's supposed to hedge.
 — Peter Schiff (@PeterSchiff) <a href="https://twitter.com/PeterSchiff/status/1820409777316323538?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 5, 2024</a>
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The United States faces a national debt of approximately $35 trillion, prompting politicians and the public to explore various solutions. Among these proposals, <a href="https://www.ethnews.com/trumps-bitcoin-strategy-thwarted-by-biden-what-you-need-to-know/" rel="noopener noreferrer nofollow">Donald Trump</a> and Senator Cynthia Lummis of Wyoming support the idea of purchasing Bitcoin.&nbsp;
They propose that holding the cryptocurrency for an extended period could help reduce the national debt. Trump discussed this idea during a FOX Business interview, where he suggested that Bitcoin and crypto checks could offset the U.S. debt.
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 Six days ago, the <a href="https://twitter.com/hashtag/NationalDebt?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#NationalDebt</a> hit $35T. Since then, it's risen by $130B. It took the nation 154 years and WWII to add the first $130B in debt. <a href="https://twitter.com/hashtag/Biden?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Biden</a> is on pace to shatter Obama's record as the biggest deficit spender. However, Obama took 8 years. Biden will do it in just 4.
 — Peter Schiff (@PeterSchiff) <a href="https://twitter.com/PeterSchiff/status/1820120568466927732?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 4, 2024</a>
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Senator Lummis has furthered this concept by introducing a Bitcoin reserve bill, supported by 2,200 advocacy letters sent to U.S. senators. This legislative move indicates a shift toward considering digital assets in governmental financial strategies.
Schiff, <a href="https://www.ethnews.com/peter-schiff-celebrates-golds-peak-as-bitcoin-struggles/" rel="noopener noreferrer nofollow">who frequently critiques Bitcoin</a>, argues that Trump’s suggestion aims primarily at garnering support from the Bitcoin community for political gain. He claims that the strategy is intended to attract donations and votes from cryptocurrency enthusiasts rather than offering a viable solution to the national debt.
Additionally, Schiff <a href="https://www.ethnews.com/peter-schiff-challenges-bitcoin-bullish-sentiment-amid-market-slump-questions-real-institutional-demand-for-cryptocurrency/" rel="noopener noreferrer nofollow">points out</a> a contradiction in the proposal. Proponents of the strategy believe that Bitcoin’s value could dramatically increase over the next two decades, potentially reaching millions of dollars per coin.&nbsp;
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 As I warned <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Bitcoin</a> has taken out the March low. It's now trading $51K. That's a 20% decline from where it was trading when the <a href="https://twitter.com/hashtag/BitcoinETFs?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#BitcoinETFs</a> closed on Friday. So this is a <a href="https://twitter.com/hashtag/Crypto?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Crypto</a> Black Monday. Look out below! <a href="https://t.co/CK1rHutgly" rel="noopener noreferrer nofollow">https://t.co/CK1rHutgly</a>
 — Peter Schiff (@PeterSchiff) <a href="https://twitter.com/PeterSchiff/status/1820344630036115600?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 5, 2024</a>
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They argue that if the government invests in Bitcoin now and sells it later, it could substantially reduce or even eliminate the national debt and also help control inflation. However, Schiff challenges this view, noting the inconsistency of expecting Bitcoin to appreciate due to inflation while using it to fight inflation.
The post <a href="https://www.ethnews.com/could-bitcoin-really-save-the-u-s-from-its-trillion-dollar-debt-trump-thinks-so/" rel="noopener noreferrer nofollow">Could Bitcoin Really Save the U.S. from Its Trillion-Dollar Debt? Trump Thinks So!</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.

Could Bitcoin Really Save the U.S. from Its Trillion-Dollar Debt? Trump Thinks So!

ETHNews

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