Could the United States Erase the National Debt by Buying Bitcoin?

There is every chance that Bitcoin surges 100 times in the next three years.  The U.S. National Debt is, as of today, about $20.6 trillion.

Bitcoin may represent an asset class as permanent as gold, silver or diamonds.  Keep in mind that all Bitcoin that can ever be created will have been mined from its software by the year 2140.

Bitcoin’s market cap is expected to hit $1 trillion during 2018.

If the United States were to begin acquiring Bitcoin, it could potentially erase the national debt by acquiring $200 billion in Bitcoin over the next few years, which would almost assure that its rise does, indeed, reach 100 times present value.  This would bring the national debt to zero.

I am not an economist, but some variant of this arithmetic and this plan could lead our country to solvency.

I know that $200 billion sounds like a lot.  But, keep in mind that the federal deficit for just this year is $440 billion.  So, the U.S. clearly has the ability to borrow enough money to fund purchases of Bitcoin at the levels I have outlined.

The idea that Bitcoin would crash to zero when the United States held $200 billion of it is almost inconceivable.  The U.S. could even seek to insulate itself from losses by buying Chicago Board of Exchange options against Bitcoin, as it accumulates it.

If this strategy were to work, America could approach the end of 2020 with little  debt, vast oil reserves, the most powerful armed forces ever assembled on the planet and the most talented President to have ever held the office about to be reelected for his second term.

As I write this, by the way, Bitcoin is at $15,448.00, more than double its value one month ago and up 1,919 percent this year.

Keith Ablow, MD

Be the first to comment

Leave a Reply