News View Non-AMP

U.S. Faces $37 Trillion Debt Crisis—Is Crypto the Escape Route?

Published by
Mustafa Mulla

As America’s national debt climbs past $37 trillion, concerns are growing about the country’s financial future. Just ten years ago, the debt stood at $18 trillion. Now, it has more than doubled, raising serious worries about inflation, currency devaluation, and the long-term stability of the economy.

Meanwhile, some experts believe Bitcoin and even stablecoins might offer some real solutions.

Let’s see how!

U.S. Double Down On Debt

The U.S debt is growing by about $4.27 billion every day, and it has reached $37 trillion so far. If nothing changes, experts warn that interest payments alone could swallow up the entire budget, leaving little for things like Social Security, defense, or public services.

Recently, Elon Musk on X said the U.S. is on the edge of “de facto bankruptcy,” with interest payments alone eating up 25% of government revenue. 

Meanwhile, economist Peter Schiff went a step further, claiming the U.S. is already bankrupt—it’s just not obvious yet.

Why Bitcoin Is the Only Solution?

Analysts are now calling Bitcoin a protective asset, especially as each U.S. citizen indirectly holds over $106,000 in national debt. That number shoots up to $323,000 per taxpayer. With a federal deficit of $2 trillion and spending of $7.1 trillion. 

However, over the past decade, when U.S debt doubled down, Bitcoin price has jumped from under $500 to more than $111,000. For many, this isn’t just a price chart; it’s proof that Bitcoin is becoming a financial lifeline.

Raoul Pal, founder of Real Vision, compared Bitcoin to a “life raft” in these uncertain times. As central banks print more money, Bitcoin’s fixed supply becomes even more attractive. Pal believes Bitcoin not only protects against inflation but also grows in value as more people adopt it.

Stablecoins: A Surprising New Ally?

While Bitcoin acts as a hedge, stablecoins may play a different role — one that could help reduce the debt itself. 

U.S. Treasury Secretary Scott Bessent recently suggested that Stablecoins are backed by U.S. Treasury bonds. As the stablecoin market grows, so will the demand for these bonds, possibly lowering government borrowing costs.

The GENIUS Act, which aims to regulate stablecoins and mandate Treasury bond holdings, has passed the Senate and awaits a House vote.

However, America’s growing debt is forcing everyone governments, investors, and everyday people to look for new solutions. 

FAQs

What are the main causes of the escalating U.S. national debt?

The escalating U.S. national debt is driven by consistent budget deficits, where government spending exceeds revenue. Factors include increased spending on social programs, defense, infrastructure, and tax cuts, often without corresponding revenue increases.

What are the potential consequences of the U.S. national debt on inflation?

A high national debt can contribute to inflation through several mechanisms. Increased government borrowing can lead to more money printing, directly increasing the money supply. It also adds to aggregate demand and can raise inflation expectations, ultimately putting upward pressure on prices.

How does the U.S. national debt impact the value of the U.S. dollar and currency devaluation?

While the U.S. dollar currently maintains its reserve currency status, persistently high debt levels can erode investor confidence. This could lead to a decreased demand for U.S. Treasury bonds and the dollar, potentially causing currency devaluation, which means your money buys less internationally.

Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

Trust with CoinPedia:

CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.

Investment Disclaimer:

All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.

Sponsored and Advertisements:

Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.

Recent Posts

Ethereum Price Could Reach $60,000, Says Tom Lee as ‘New Wall Street’ Vision Emerges

Ethereum may be on track to reach $60,000 in the next few years, according to…

October 3, 2025

Top 3 Crypto Picks for a 10x Return Before 2026

Investors searching for 10x returns before 2026 need to balance ambition with realism. Many of…

October 3, 2025

What’s the Best Crypto to Buy Post ETH Success, A Penny Coin Races Toward $1 Faster Than XRP

Ethereum (ETH)’s success story continues to inspire traders across the market. For years, ETH has…

October 3, 2025

Walmart-Owned Fintech Firm OnePay To Offer Crypto Trading and Custody Features

Cryptocurrency is steadily gaining ground in the U.S., with more people and businesses exploring digital…

October 3, 2025

Could Trump’s Tariffs Lead to $2,000 Payouts for Americans?

President Donald Trump has floated a proposal that could change the way Americans benefit from…

October 3, 2025

Coinbase Partners With Samsung

Coinbase has partnered with Samsung to integrate crypto trading directly into the Samsung Wallet app…

October 3, 2025