US national debt is 33 times higher than total crypto market cap
During this week, the US National Debt reached its all-time high value, for an accumulated debt of over $33 trillion, which has made economists question the United States’ abilities to honor their financial obligations to Treasury investors.
Interestingly, the US national debt is now over 33 times higher than cryptocurrencies’ total market capitalization of $1.04 trillion.
This means that the United States government would need the equivalent of all the money in more than 30 crypto markets in order to repay all the investors that somehow are betting on the country’s financial health, effectively lending money to this government through US Treasury bonds.
When converted to values in Bitcoin (BTC), the dominant cryptocurrency with over 50% of the entire market cap, this debt would be equal to 60 times the total supply of 21 million BTC.
Each taxpayer would need to pay 10 BTC to get even with the US national debt
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Notably, considering a debt of $254,961 per taxpayer in the US, current numbers would mean that each taxpayer would need to pay close to 10 BTC in taxes, so the United States could be able to get even with their debts.
What is the US National Debt?
The US national debt is the amount of money that the federal government owes to its creditors. It is a form of borrowing that the government uses to finance its operations and programs.
When investors buy US Treasury bonds, they are essentially lending money to the government. The government agrees to pay back the loan with interest, at a rate determined by the Federal Reserve.
Is the US Treasury able to honor its debt payments?
There is some debate among financial experts about whether the US Treasury will be able to meet its debt obligations in the future. The national debt is currently at an all-time high, and some experts worry that it is becoming unsustainable.
However, the US government has a long history of paying its debts on time. It is also the world’s largest economy, and it has a number of options for raising money, such as raising taxes or borrowing from foreign governments.
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