Why Bitcoin Will Continue to Rise in Price
Here’s a simple reason why I expect the price of Bitcoin, in fiat terms, to continue rising.
Despite not caring about BTC’s fiat price, personally, it’s useful, when explaining why BTC will continue to grow in purchasing power, in conversations with people who care about the price.
The US national debt sits at $30.33T and it has nothing to do with any particular president.
The US government has been spending more than they have been taking in, for years, despite tax receipts growing, almost every single year.
Blaming any particular president for the size of the national debt is clownery.
In 2020, aided by Covid, US gov. spending went through the roof and reached $6.6T, despite having pretty much the same amount of revenue as in 2019, which left them with a new deficit of $3.1T.
That’s only $300B away from their yearly revenue. Yikes! 😬
2021 didn’t look better for the US government either, as, again, holding true to what seems to be a tradition, they increased their revenues to $4.05T, but spent $6.82T.
That left them, again, with a deficit of, this time, $2.77T, which is a “slight” improvement, from previous year.
We can expect this “tradition” of “spending more than we’re making” to continue, as we can see from Table 1.
In my humble opinion, the deficits forecasted in this table are laughable & highly optimistic.
The US government is going to experience waaay bigger deficits. Why? Let’s have a look 👇
The US national debt has been growing for decades.
People tend to point fingers to previous presidents (i.e. Trump, Obama, etc.), but they’re not necessarily responsible for it.
What’s more likely to be the main cause?
The broken fiat monetary system we’ve been on since 1971.
Notice how the size of the debt has experienced an almost exponential growth pattern, since 1971, when the whole world went on a purely fiat monetary system, because the US decided to end the USD’s peg to gold?
That was meant to be a “tEmPoRaRy MeAsUrE”.
Sure 🤡
What else can give us confidence that the US debt will continue to rise, almost at an exponentially rate?
Remember the $30.33T current national debt?
You’d be surprised to know that the US also has $168.56T (5.55x the current national debt) in unfunded liabilities.
For a government that has been operating at a net loss, a.k.a. deficit spending, for so long, where do you think they will find the money to meet those enormous financial commitments/liabilities?
Do you think they’ll get it from taxes? Good luck with that! 😂
Maybe they can confiscate the wealth of all those pesky billionaires and liquidate their assets at market value, without any loss — like that can happen lol — and, that way, we can pay off the national debt & the unfunded liabilities 🤯
Let’s run through that thought experiment.
The wealth of the 745 billionaires in the US amounts to ~$5T.
If all their wealth was seized & liquidated at market value, it would only FUND the US gov. for..
*Drumroll*
8.8 months!
That’s just to fund government day-to-day operations.
We’re e not even talking about using that money to pay off some of the debt or even attempt to cover the enormous unfunded liabilities.
Here’s a couple of fun visualisation for you.
US billionaires wealth is equal to:
- 16.5% of current national debt ($30.3T)
- 2.9% of unfunded liabilities ($168T)
US GDP is $24T or:
- 79.1% of current national debt
- 14.2% of unfunded liabilities
So, we ask again, where will the US government get the money to meet their financial obligations?
The answer is simple: they’ll print it out of thin air.
What does that mean? It means they’ll issue more debt and roll the old one into the new one, and have the Fed buy it.
But why though?
Because the US government will run out of people and institution ready to lend them money.
It’s happened before.
In those cases, the Fed steps in to buy the debt, but not directly, for “legal reasons”.
@LynAldenContact does a great job explaining this in-depth. Thanks Lyn!🧡
It’s basically money printing to finance government spending.
But, bottom line is, the USD will continue to lose value, because exponentially more of it will be printed into existence, to cover the US government’s financial liabilities.
Since there will never be more than 21M BTC (2.1 quadrillion sats), and the demand for stateless, unconfiscatable, permissionless money is growing, due to current world events (i.e. truckers), we can reasonably expect the price of Bitcoin to 🚀🌕
It’s not a guarantee.
Nothing is 100% guaranteed, apart from fiat currencies continuing to debase, at an accelerating rate, I may add. Thanks @FossGregfoss for that insight 🧡
So, do with this what you want, but know that it’s coming.
Thanks for reading 🧡
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