US Debt Hits $37 Trillion : Is Bitcoin the Ultimate Hedge ?

As the US national debt skyrockets, Bitcoin emerges as a go-to asset to hedge against inflation and currency devaluation. Explore this pivotal moment in finance.

Written by Charles Ledoux

Translated on June 20, 2025 at 16:03 by Sarah

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Bitcoin and Stablecoins : Solutions to US Debt ?

With a value that has surged from less than $500 to over $100,000, Bitcoin emerges as a real lifeline in these troubled economic times.

The US national debt just reached $37 trillion. Thats’s $108,000 for every single American.

Who’s going to foot the bill? pic.twitter.com/DxZXzowwVE
— President Xi Jinping – Commentary (@PresidentXiCHN) June 20, 2025

Often referred to as “digital gold,” Bitcoin has demonstrated its resilience amidst economic turmoil. With the US national debt projected to exceed $33 trillion by 2025 and persistent inflation, investors are turning to decentralized assets to safeguard their wealth.

Unlike fiat currencies susceptible to monetary printing erosion, Bitcoin, limited to 21 million units, offers a programmed scarcity. This feature makes it an attractive hedge against runaway inflation and currency devaluation.

Simultaneously, stablecoins are gaining prominence, unveiling their potential to reduce government borrowing costs and manage national debt. Backed by the US dollar and witnessing increasing adoption, these digital assets could become a strategic tool in crisis management.

JUST IN: 🇺🇸 Treasury Secretary Bessent says crypto stablecoins can lower government borrowing costs and reduce national debt.

"A thriving stablecoin ecosystem will drive demand from the private sector for US Treasuries, which back stablecoins. This newfound demand could lower… pic.twitter.com/wcNzj7PgzW
— Watcher.Guru (@WatcherGuru) June 17, 2025

According to US Treasury Secretary Scott Bessent, as the stablecoin ecosystem expands, it could generate strong demand for US Treasury bonds used as reserves. This increase in sovereign debt demand could lead to reduced government borrowing costs, aiding in national debt management.

Adoption of Stablecoins, Key to Entry into the Digital Economy

Furthermore, Bessent highlights that stablecoins could act as a gateway for millions of people worldwide to access the dollar-based digital asset economy, opening up new opportunities.

For instance, platforms like Stellar or Ripple facilitate low-cost international money transfers, making stablecoins appealing for fund transfers or cross-border trade.

🔥 JUST IN: Walmart & Amazon are exploring stablecoin payments to streamline transactions and reduce fees, per WSJ. pic.twitter.com/j9ngw7ExQG
— CoinDesk (@CoinDesk) June 13, 2025

Moreover, many major companies are exploring the launch of their own stablecoins, as evidenced by recent rumors surrounding Amazon and Walmart.

As the US debt reaches historic highs, exploring alternative solutions becomes an urgent priority. While Bitcoin is widely acknowledged as a hedge against inflation, the role of stablecoins in debt reduction remains to be proven. Only time will tell if these dollar-backed digital assets can help address this major crisis.

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Charles Ledoux

Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.

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