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Author: Divine Grace
A small piece of paper reads “$35 trillion in cryptocurrency and we have no debt.” This is the US president’s “magic trick” to solve the national debt problem.
“The Fed prints too many dollars? Then useCryptocurrency debt repayment!”Trump made this statement in a public speech in Washington that shocked the global financial market. Just when the U.S. national debt officially broke through in October 2025$38 trillionAt this critical moment in history, Trump once again demonstrated his unconventional style.
At a private party, Trump even bluntly said: “I will write on a little piece of paper: $35 trillion in cryptocurrency, we have no debt, and this is what I like to do.” This sentence may seem like a joke, but it exposes the severity of the current debt crisis in the United States and the non-traditional solutions that the Trump team is exploring.
The debt crisis is out of control
The U.S. national debt reaching $38 trillion is a dizzying number.This number is higher than that of China, Germany, Japan, India and the United KingdomThe total size of the economy is even greater.
Even more worrying is the rate at which the national debt is growing.From US$37 trillion to US$38 trillion, the United States only spent aboutmore than two monthstime.This growth rate sets a record for the fastest trillion-dollar debt accumulation outside of the epidemic period.
A closer look at the data makes the situation even more shocking.The U.S. national debt is rising byAbout US$70,000growth rate.This means that in the minutes it has taken you to read this article, the national debt has increased by tens of millions of dollars.
Interest payments on the national debt have become the fastest-growing part of the budget.Last year, interest payments on the U.S. national debt were approximately $1.3 trillion, which has exceeded U.S. military spending (the 2025 defense budget is approximately $895 billion).
Michael Peterson, CEO of the Peter G. Peterson Foundation, warns: “We spent $4 trillion on interest over the past decade, but over the next decade we will spend$14 trillion.”These interest payments crowd out important future public and private investments, harming the economic interests of every American.”
Trump’s Cryptocurrency Solution
Faced with this behemoth of debt, Trump proposed an unprecedented solution – cryptocurrency.On the surface, Trump’s “encryption solution” looks like a piece of political humor, but hidden behind it are his views on “de-dollarization” and “debt restructuring.”strategic thinking.
Trump said in a public speech: “Too much dollar debt? Don’t worry, we have a new monetary system now –Blockchain and cryptocurrencies will allow America to redefine credit.” This statement is not an isolated case, but part of Trump’s series of actions to support cryptocurrency.
After Trump came to power, he pardoned Binance founder Changpeng Zhao. This was not just a personal pardon, but also brought the entire crypto camp to his side.The Trump administration may promote the pilot of “US version of sovereign crypto-assets” in the next few years, partially handling debt in the form of digital assets.
Trump’s strategy is to make the United States a leader in cryptocurrency.On March 6, 2025, Trump signed an executive order defining Bitcoin as “digital gold” and authorized the Ministry of Finance to establish a national strategic BTC reserve based on the principle of “budget neutrality”.
The U.S. government has even accumulated Bitcoin through “legal” confiscation.In October 2025, the U.S. Department of Justice filed criminal charges against the Cambodian “Prince Group” and confiscated 127,271 bitcoins obtained by the group’s fraud, bringing the number of bitcoins held by the U.S. government to more than 320,000.
Possibility of Bitcoin debt repayment
Trump’s idea sounds bold, but how does it actually work?We let data speak.
The current size of the U.S. national debt is as high as $38 trillion, and the total market value of the entire cryptocurrency market is far from reaching this level of magnitude.Even if all cryptocurrencies are used, it will be difficult to repay the debt, which is not operationally feasible.
When it comes to Bitcoin specifically, the situation is even more complicated.If the United States tried to pay off its debt with its roughly 320,000 Bitcoin holdings, each Bitcoin would need to be worth about$116.5 million.This is about 1,000 times higher than the current market price of about $108,000.
According to this valuation, the total market value of Bitcoin will soar to approximately 230 trillion U.S. dollars, exceedingTwice the global GDP.Obviously, this kind of valuation is impossible to achieve in reality, because even if prices miraculously reach such heights, the mechanism of its operation will break down long before the debt disappears.
Bitcoin trading has an average daily volume of about $60 billion to $70 billion, a fraction of the $7.5 trillion in liquidity in global bond or foreign exchange markets.Attempting to sell small amounts of Bitcoin to “pay off” government debt would also immediately crush market demand and destroy price depth.
actual strategic intent
So, what are Trump’s real intentions?Expert analysts believe that this proposal is more of a symbolic political statement than a practical economic plan.
The core idea is to try to transfer or transform the United States’ debt burden into a globally recognized “store of value” by creating or utilizing a new type of digital asset with broad consensus, thereby technically “resetting” the debt.
The intention of this proposal may include: political narrative construction, portraying itself as a reformer who embraces innovation and challenges the old financial system, in order to gain broad support from the cryptocurrency community and young voters.
Trump is also sending a strategic signal: If his government takes office, it will vigorously promote the United States to take a leading position in the field of cryptocurrency and elevate it to a strategic level related to national competitive advantage.
This is also a test of market reaction.By throwing out this bold idea, observe the reaction of the market, traditional financial institutions and international creditors, and prepare for possible subsequent policy adjustments.
Potential Impact and Risks
Trump’s proposal, even if not feasible, could have a significant impact on markets.Such remarks may boost sentiment in the cryptocurrency market in the short term, and are interpreted as major positives by some investors.
Compared with Bitcoin, which is highly volatile, the U.S. dollar-peggedStablecoincould play a more practical role in Trump’s strategy.Its advisers have said regulated stablecoin legislation could create trillions of dollars in demand for U.S. Treasuries “overnight.”
Trump’s comments also pose serious risks.If one side attempts to use non-sovereign credit-backed assets to repay debts denominated in legal currency, it may be interpreted by the market as adisguised breach of contract.
This will seriously damage the international credit of the U.S. dollar and U.S. Treasury bonds, leading to catastrophic consequences.No country is willing to risk this kind of debt repayment because Bitcoin is more volatile than stocks.
The plan also faces legal hurdles.Current U.S. law does not recognize Bitcoin as legal tender.If Bitcoin is to be used to repay the national debt, the U.S. government needs to amend relevant laws, which is an almost impossible task under the wrangling mechanism of the U.S. Congress.
In the future, we may see the emergence of more innovative financial products similar to “BitBonds” – a BTC-enhanced treasury bond that allows investors to share part of the gains from the appreciation of BTC while obtaining low fixed interest rates.The U.S. government may hedge its debt through reserve appreciation.
But the reality is that the U.S. national debt is still increasing by nearly $70,000 every second.While Trump talks about his cryptocurrency solution, the U.S. federal government remains in a partial shutdown, with hundreds of thousands of federal workers without pay and parts of the economy in disarray.
Bitcoin and cryptocurrencies are not a magic wand to solve the debt crisis, but they are becomingPart of the discussion on U.S. fiscal strategy.This linkage between debt and encryption may reshape the global financial landscape and go further than we imagine.
