Top Economist Slams Idea of Bitcoin Saving the U.S. from Major Debt
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There have been many speculations about Bitcoin's potential after reports surfaced that former President Donald Trump suggested adding Bitcoin to the national reserve.
Economist Peter Schiff, however, remains unconvinced, challenging the idea that Bitcoin could ever resolve the United States’ mounting national debt.
Responding to claims by Bitcoin advocates that acquiring one million BTC could eventually settle the $36 trillion debt, Schiff dismissed the idea as wildly unrealistic. He argued that for Bitcoin to cover such an immense liability, its market capitalization would need to skyrocket by over 20,000%, an increase he considers unattainable.
At its current price 1 BTC over $105,000, one million Bitcoin amounts to roughly $105 billion—just a fraction of the U.S. national debt. Schiff pointed out that for Bitcoin to match the debt’s current value, it would need a market cap of $761 trillion, six times the global GDP.
Moreover, he emphasized that the debt is not static; it continues to grow annually as the U.S. government borrows more money, further diminishing the feasibility of Bitcoin as a solution.
Schiff also questioned Bitcoin’s potential for global adoption. Despite its price gains, he noted, the cryptocurrency has not achieved widespread use as a global currency, with few countries recognizing it as legal tender. According to Schiff, Bitcoin remains a speculative asset driven by optimism rather than tangible demand, and its value could plummet if its market cap grows too large, further undermining its ability to address issues like national debt.
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