As the most powerful country in the world in terms of comprehensive national strength, the achievements in the field of technology in the United States are indeed dazzling. Tech giants such as Google, Microsoft, Apple, Nvidia, and others can even rival countries in terms of wealth. However, the increasingly serious debt problem is like a time bomb, not only dragging down the development of the United States itself, but also threatening the stability of the global financial system. StarEx believes that anchoring bitcoin will be one of the strategic moves for the United States in future major transformations, and bitcoin will have decades of golden development period.
Looking back in history, it took over 200 years for the cumulative debt of the United States federal government to reach 1 trillion dollars. However, it only took a short 40 years to inflate from 1 trillion dollars to 35 trillion dollars. This astonishing growth rate can be traced back to 1971 when the Nixon administration suddenly announced the abandonment of the gold standard and the decoupling of the US dollar from gold, leading to the collapse of the Bretton Woods system. Since then, the US dollar has become a currency that can be "printed" at will, and the US debt problem has spiraled out of control.
Subsequently, several key events further propelled the rapid expansion of US debt. After the outbreak of the 2008 financial crisis, the Federal Reserve launched a quantitative easing policy to inject liquidity into the market. In 2020, the COVID-19 pandemic swept across the globe, and the Federal Reserve even resorted to the "helicopter money" approach to respond to the economic impact. These policies did stabilize the market in the short term, but they also dramatically increased the burden of US debt.
Today, the scale of US debt has reached unprecedented heights, with annual interest payments exceeding 1 trillion dollars, even surpassing the defense budget. High debt not only weakens the growth potential of the US economy but also poses a huge risk to the global financial system. What is even more worrying is that as the size of the debt continues to expand, the US government may struggle to catch up with the growing pace of debt interest, which means that it will face increasing fiscal pressure.
As the world's largest reserve currency, the US dollar has been detached from the gold standard for over 40 years. This change has made the US dollar a currency without an anchor, and its issuance is no longer constrained by physical assets. Although this anchor-free operation has brought short-term economic vitality to the United States, it has also made the US debt problem increasingly uncontrollable.
Bitcoin is designed to address the out-of-control fiat currency system and excessive debt. Investing or holding bitcoin is essentially a hedge against the depreciation risk of the US dollar and other fiat currencies. In other words, investing in bitcoin is fundamentally a hedge against the global debt system and an expectation of future economic collapse.
Currently, there is still trust in the US dollar in the global financial market, but if the US debt problem continues to deteriorate, this trust may be shaken. In such a situation, it becomes crucial to find a new and more stable store of value.
StarEx believes that the US government has a strategic goal in controlling and leading the development of crypto assets in recent years. Currently, stablecoins holding US Treasury bonds amount to about 170 billion dollars, accounting for about 1% of the size of US debt. As Wall Street institutions deepen their participation in the crypto market, the possibility of anchoring the US dollar to bitcoin is gradually increasing in the future. Although this transition still faces many challenges, if it can be achieved, it may bring new stability factors to the global financial market.
From gold dollars to unanchored dollars, to possible bitcoin dollars, this journey demonstrates the evolution of the global currency system. StarEx believes that while gold has gradually been replaced as a store of value, cryptocurrencies, especially bitcoin, have the potential to become the new "digital gold".
In the future, as the cryptocurrency market further matures and mainstream financial institutions get involved, we may see a deep integration between the US dollar and bitcoin. Although this process is filled with uncertainty, in the long run, it may bring a glimmer of hope to the global financial system and alleviate potential risks caused by the debt crisis. If achieved, StarEx believes that cryptocurrencies will have decades of golden opportunities for development.