Former President Donald Trump has proposed an unconventional solution to the United States’ $35 trillion national debt: using Bitcoin. With the national debt on the rise, Trump suggested using Bitcoin to pay off the debt to China.

“Crypto is a very interesting thing. It’s very high-level in certain ways, intellectually very high-level. But if we don’t do it, China’s gonna do it… maybe we’ll pay off our $35 trillion debt, hand them a little crypto check, right?” Trump stated in an interview. “We’ll hand them a little Bitcoin and wipe out our 35 trillion.”

This proposal has sparked widespread discussion within the cryptocurrency community. However, the feasibility of using Bitcoin to mitigate the country’s financial debt faces numerous challenges.

The United States government currently holds 210,392 Bitcoin, valued at approximately $13.3 billion, making it one of the largest holders of the cryptocurrency. At the time of writing, Bitcoin is trading near $63,000.

Bitcoin Price Predictions and Debt Repayment Scenarios

Several financial institutions have made bullish predictions about Bitcoin’s future price:

  • Fundstrat Global Advisors estimates Bitcoin could reach $180,000 by the end of 2024, driven by spot Bitcoin ETF adoption.
  • Standard Chartered has revised its 2024 year-end target from $100,000 to $120,000, citing increased institutional adoption and favorable market conditions.
  • Bernstein, managing over $750 billion in assets, raised its 2025 target from $150,000 to $200,000.
  • ARK Invest projects a long-term price target of $600,000 by 2030, emphasizing Bitcoin as a hedge against inflation and a store of value.
  • Fidelity has predicted that Bitcoin could hit $1 billion by 2038.

Based on these predictions, here’s how many Bitcoins the U.S. would need to pay off its $35 trillion debt:

  • At the current price of $63,000, the U.S. would need approximately 555,555,600 Bitcoin.
  • At $180,000 per Bitcoin, the U.S. would need roughly 194,444,000 Bitcoin.
  • At $280,000 per Bitcoin, the U.S. would need about 125,000,000 Bitcoin.
  • At $600,000 per Bitcoin, the U.S. would need around 58,333,000 Bitcoin.
  • If Bitcoin reaches $1 million, the U.S. would need only 35,000,000 Bitcoin.
  • If Bitcoin hits $1 billion by 2038, as predicted by Fidelity, only 35,000 Bitcoin would be required.

While the idea of using Bitcoin to erase national debt is intriguing, its practicality is questionable due to several economic and logistical challenges. Bitcoin’s volatility, an evolving regulatory environment, and significant trading volume are key factors to consider. Additionally, Bitcoin’s supply is capped at 21 million coins, making some of these scenarios unrealistic.

Trump’s assertion that a small amount of Bitcoin could wipe out all of the U.S. debt is premature. However, if the U.S. continues to accumulate Bitcoin and its value continues to rise, the country could potentially reduce its multi-trillion dollar debt over time.

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