Bitcoin saves U.S. debt? Michael Sailer's "crazy" blueprint, welcome to Today's Financial Special Report, let's talk about a plan that may be bolder than a science fiction movie - using Bitcoin to repay US Treasury bonds! This is exactly what MicroStrategy co-founder Michael Saylor will propose in his March 11 keynote speech on “Bitcoin in America”. His core idea is to make Bitcoin super appreciate and ultimately fill the fiscal deficit of up to $36 trillion. Step 1: National currency hoarding plan. According to Sailer's vision, the U.S. Treasury Department may need to turn partially to Bitcoin to redistribute funds from gold or foreign exchange reserves to the BTC sector. At the same time, the government may even establish a national-level Bitcoin mining program to use abundant energy resources to generate Bitcoin in order to establish long-term reserves. After all, 30%-40% of the world's Bitcoin computing power is located in the United States, which theoretically has the basis for such strategic adjustments. Step 2: Bitcoin price soars to $5 million. Of course, just holding Bitcoin is not enough. To repay debts, Sailer's assumption is that the price of Bitcoin reaches $5 million per coin, a 100-fold increase from the price at the beginning of 2025. This means that the world must enter an extreme "hyperbitcoinization" state, that is, countries generally accept BTC as a reserve currency, thereby weakening the stability of the fiat currency system. However, this assumption faces great challenges. The high volatility of the Bitcoin market, government regulatory barriers and resistance from traditional financial institutions are potential obstacles to Bitcoin becoming a major reserve asset in the world. Step 3: Issuing Bitcoin bonds. Even if the government really hoards Bitcoin on a large scale, how to monetize it is a big problem. Sailer proposed two possible paths: selling Bitcoin in stages - gradually selling BTC to prevent market panic, and the proceeds will be directly repaid by creditors or repurchased Treasury bonds. Issuing Bitcoin-backed bonds – Debt refinancing at lower interest rates using future Bitcoin appreciation as collateral. However, both approaches face a core problem: If the price of Bitcoin collapses, the entire debt repayment plan will collapse directly. If the US dollar depreciates as a result, the chain reaction in the financial market may be more serious than expected. If Sail's plan is successful, at least three conditions need to be established at the same time: the ongoing demand for Bitcoin by global institutions and countries - if central banks do not adopt BTC as a reserve currency, this plan will not be established. Stable regulatory framework – The United States must ensure that Bitcoin holdings are not damaged by geopolitical or internal policy changes. Long-term market stability – A decades-long time frame is needed to alleviate the impact of market volatility on the fiscal. Critics believe that these assumptions are too idealistic and lack practical operationality. But supporters pointed out that Bitcoin’s scarcity and long-term upward trend may provide the necessary support. Michael Sealer's proposal undoubtedly has a tinge of challenging traditional financial systems, but it also reflects the growing influence of Bitcoin in the sovereign economic debate. The question is whether legislators are really willing to bet on state solvency on a decentralized, extremely volatile asset. The answer to this question may not be revealed until the global monetary pattern changes fundamentally. What do you think of this radical idea? Welcome to share your views in the comment section! Thanks for watching, see you all. Risk Warning: The remarks in the video can only represent personal opinions and cannot be used as investment advice. Chart analysis is only used to learn how to view indicators and cannot be used in real trading. Investment is risky and not suitable for everyone. All transactions will have the possibility of a complete loss, even exceeding the personal financial ability. You must contact your legal registered financial adviser before investing and cannot make any decisions based on the remarks and charts in the video.
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