KEY POINTS
- Trump said the US can hand "a little Bitcoin" to its debtors to "wipe out" the country's $35 trillion debt
- Sen. Lummis previously floated the said idea at the Bitcoin 2024 conference
- Some crypto users agreed that it was possible for $BTC to be used that way
- Others were against giving US Bitcoin holdings to other countries as a means to pay off debt
More than a week after delivering a keynote address at the Bitcoin 2024 conference, former U.S. President Donald Trump continues to speak about the world's top digital asset and how it can help the American economy, including its potential use case in relation to the country's staggering debt.
A nod to Lummis' $BTC bill?
During the Nashville conference, Sen. Cynthia Lummis, R-Wyo., announced the "Bitcoin Reserve Bill," which includes a proposal for the United States to invest in the digital asset to help with the country's staggering $35 trillion debt.
She further explained in an interview with The Bitcoin Layer that the digital asset's ecosystem is "very secure" and thus makes $BTC a potentially suitable debt-resolving asset to back the U.S. dollar. She called on the crypto community to help her explain Bitcoin's relevance to other legislators.
For my grandkids, I hope to leave things better than I find them today.
— Cynthia Lummis 🦬 (@CynthiaMLummis) August 3, 2024
A Strategic Bitcoin Reserve is for them. Low-time preference policy is required to win the future. https://t.co/Jctpge1QeF
Trump agrees that $BTC can help with debt
"Who knows maybe we'll pay off our $35 trillion [debt]? Hand them a little crypto check, right? We'll hand them a little Bitcoin and wipe out" the country's debt, Trump said in a recent interview.
When pressed how Trump will make the world's first decentralized cryptocurrency "more prominent" for use among the American public, he said "it's already prominent." He went on to note that Bitcoin will "end up benefitting the country," and should be supported instead of shutting it down. "If we don't embrace it, it's gonna be embraced by other people," he noted.
Here’s the FULL clip of Trump saying we’ll pay off the National Debt with Bitcoin. It gives a little more context.👇
— Cory Bates (@corybates1895) August 3, 2024
“It’s bigger than any company in the world already…we might as well be the leader.” pic.twitter.com/ZfYdb8rEMD
"It's a massive thing already. It's bigger than any company in the world. I mean, if you look at the market, it's bigger than many countries," he added. He concluded with a call to action, saying the U.S. "might as well be the leader" in the Bitcoin and broader crypto industry.
Crypto users react
Many in the crypto community on X have hailed Trump's support for Bitcoin as an asset that could be the country's answer to its spiraling debt. One user said the idea is "valid if there is a real currency crisis."
Another user said such a scenario is possible if the U.S. purchased 5% of the world's total $BTC supply, propelling other nations "to catch up." The price will then pump "easily" to the millions as more states begin mining and "improve renewable use." Finally, countries "would allow redemption, and debt paid with strength," the user said.
However, many other crypto holders, especially Bitcoiners, were completely against the notion, with many saying it's not a good idea to use U.S. government Bitcoins to pay off debt.
Yea.. what happened to ‘never sell your bitcoin’?
— TheMekon_Venus (@TheMekon_Venus) August 2, 2024
This certainly feels like it..
Or same thing if your giving it to someone else to pay a debt.. that will probably sell.
Great idea, but I would rather keep the #BTC and hand over cash.
— Richard Barry (@irishchink) August 3, 2024
Paying with #Bitcoin is like handing over sovereignty.
To keep the new monetary power and to retain that power...we must hold
ALL the Bitcoin. pic.twitter.com/i94Bpv4CzF
Meanwhile, Bitcoin shed some $6,000 overnight as the crypto market reels from geopolitical, economic, and micro headwinds. Most cryptocurrencies are in the red, led by Ethereum, which has gradually been declining in the past few weeks.
