Two influential figures in the cryptocurrency community are urging their followers to invest in Bitcoin, gold, and silver due to the increasing national debt in the United States. Balaji Srinivasan, an entrepreneur and angel investor, expressed in a recent post on X that Bitcoin is the only viable solution to escape the consequences of unsustainable government spending and the potential confiscation of assets. Srinivasan emphasized that the country’s debt and wasteful expenditures are rapidly growing at unsustainable levels, with the national debt currently reaching a record high of $34.5 trillion, which is a 25% increase since 2020.
Srinivasan, who is also a general partner at Andreessen Horowitz (a16z), outlined four potential approaches to address this issue: denying its existence, attempting to fix it through political processes, giving up, or simply taking advantage of the situation. He believes that the last option is radical but realistic, pointing out that government deficits are now accumulating at a rate of $10 billion per day.
Robert Kiyosaki, the author of “Rich Dad Poor Dad,” echoed Srinivasan’s sentiments and advised his followers to be prepared by investing in assets that hold value, such as Bitcoin. He made this recommendation in a post on March 11.
In addition to the financial risks associated with the rising national debt, Srinivasan cautioned that as the financial reckoning approaches, the government may consider confiscating private assets. He provided examples such as the seizure of assets from protesting Canadian truckers, freezing Russian assets, and the use of specific states against prominent individuals like Elon Musk and Donald Trump.
Srinivasan went on to state that private property will not be protected by the state in a bankrupt America. It is worth noting that in March 2023, he famously placed a $2 million bet that Bitcoin would reach $1 million by June of that year due to hyperinflation in the United States.
In related news, this week will see the release of significant economic and inflation data in the United States. Key figures include the adjusted core Consumer Price Index (CPI) for February, the Producer Price Index (PPI) for February, and the one-year inflation rate expectations. The outcome of these reports may significantly impact the March Federal Reserve meeting. According to Chicago Mercantile Exchange data, there is a high probability of the Federal Reserve keeping interest rates unchanged on March 20, with a likelihood as high as 97%. Currently, interest rates in the US stand at 5.5%, a level that has remained unchanged since July 2023.