The United States national debt has now crossed $23 Trillion. Furthermore, debt per the United States citizen sums up to $69, 724. In a way, central banks are paving way for the smooth transition of Bitcoin into traditional finance.
While traditional finance enjoys the trust of the major US population, Bitcoin is here to stay. Considering the fact that Bitcoin and other crypto-assets are anti-inflationary and have a controlled supply, it is likely that in the future that Bitcoin continues to map the international market and eventually becomes a better bet than the inflated dollar.
Is Fed Responsible For Growing interest in Bitcoin?
Statistics further reveal that the debt to gross domestic product ratio is 106.65%. As a matter of fact, the debt makes up for $1,000,000 in debt per 1 Bitcoin. Since mid-September, the US Fed has injected U.S. Fed has effectively created hundreds of billions in new money more than Bitcoin’s entire market cap of $165B in a few span of days.
The purchasing power of the dollar has seen a severe decline over the last century. Per the Bureau of Labor Statistics, $1.00 in January of 1913 had as much purchasing power as $25.67 of today’s dollars. Until the United States can take control of its budget deficits, the dollar is at the risk of experiencing even greater inflation.
However, it is not the case with Bitcoin, unlike the dollar, it has a fixed supply. This implies that the rate at which new Bitcoins are created is controlled by algorithms in the Bitcoin code. The Bitcoin mining rate is stable and predictable which makes the rate of inflation easier to anticipate.