Donald Trump Once Said The US Could Pay Off Its $37 Trillion Debt Burden With Bitcoin—But Could It Really?

Core Insights - President Trump's previous comments on Bitcoin's potential to alleviate the U.S. national debt of $37 trillion warrant examination, particularly the feasibility of Bitcoin covering this debt [1][2] Group 1: Bitcoin Valuation and Market Cap - Bitcoin's circulating supply of approximately 19.93 million coins would need to reach a total value of $37 trillion, implying an average price of nearly $1.86 million per BTC [2] - Currently, Bitcoin trades around $112,000, with a market capitalization of about $2.23 trillion, which is a small fraction of the required amount to offset U.S. debt [3] Group 2: Liquidity and Market Dynamics - Economists argue that even if Bitcoin reached the necessary valuations, converting such a large amount into cash would be counterproductive, as large-scale liquidation would diminish liquidity and lead to cascading selloffs [4] - Over 20% of all mined Bitcoin is considered unrecoverable, further limiting available liquidity [5] Group 3: Legal and Political Constraints - The U.S. government faces significant legal and political challenges in attempting to seize or monetize privately held Bitcoin, which could lead to substantial backlash and constitutional issues [5] Group 4: Economic Implications - Analysts warn that even if Bitcoin's market value equaled $37 trillion, the attempt to convert that wealth into dollars would destabilize global markets, potentially causing price collapses and systemic contagion across various financial sectors [6] - The Peterson Foundation emphasizes that sustainable economic growth and policy reform are essential for fiscal solutions, rather than relying on speculative asset valuations [7]