Bitcoin becoming an attractive safe haven asset amid rising US government debt
Bitcoin becoming an attractive safe haven asset amid rising US government debt
Bitcoin is seen by many investors as the only solution to protect capital from inflation, especially due to the growing national debt in the US.
On social network X, there have been calls from prominent experts in the crypto community to buy up Bitcoin, gold, and silver. One of them is "Rich Dad, Poor Dad" author Robert Kiyosaki, and the other is investor Balaji Srinivasan, former CTO of Coinbase and former general partner of venture capital firm Andreessen Horowitz.
Citing the risks of higher inflation amid rising government debt in the United States, Balaji Srinivasan wrote that he sees Bitcoin as the only realistic way out. Only BTC can protect against the potential loss of wealth due to rising government spending and the threat of higher inflation.
Srinivasan warned: "We are now in the treasury looting phase of the imperial collapse." US government debt is now at a record $34.5 trillion, up 25% since 2020. The national debt and government spending are growing too fast.
"Fortunately, we have Bitcoin, which is independent of the government and not easily confiscated. Any asset in a DC-controlled registry could fall into the government's clutches, but Bitcoin holders could remain unaffected," he believes.
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According to Cointelegraph, Balaji Srinivasan sees four approaches to the problem: deny it's happening, fix it with political regulation, surrender, or "starve the beast with Bitcoins, money they can't easily confiscate or print.
Balaji warned that the coming financial reckoning will force the predatory state to begin assessing the likelihood of confiscating private assets.
He recommended choosing Bitcoin as a means of defense, as the government deficit is now $10 billion a day and growing.
A year ago, Balaji Srinivasan bet $2 million that BTC would reach $1 million by June due to hyperinflation in the US.
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Famous investor Robert Kiyosaki, in his musings on the best ways to invest money, advised investing in safe assets such as Bitcoin, gold, and silver.
He wrote, "The national debt is growing by $1 trillion every 90 days. America is sick. Prepare now. Buy more gold, silver, Bitcoin."
Kiyosaki constantly warns of hard times ahead for the US economy. "Please prepare. Take care of yourselves," he notes.
At the time of writing, Bitcoin is trading around the $68,750 level, and experts have noted growing interest in the asset from both individual and institutional investors.
Read also: Bitcoin's rise has led to a record increase in TVL DeFi
