Here Is Why The US Government Should Use Principal-Protected Bitcoin Bonds To Partially Fund Soaring Deficits
Bitcoin's unique characteristics could be used by the US government to partially fund its growing deficits, according to a Bitcoin maximalist. With its limited supply, disinflationary properties, and increasing financialization, Bitcoin is seen as potentially underpinning a new global hurdle rate. The US Treasury will need to issue more bonds to finance its deficit, and leveraging Bitcoin could be a solution.
With its hard-coded supply limits, disinflationary characteristics enforced by the periodic halving events, and growing financialization via futures and spot ETFs, Bitcoin is on the cusp of underpinning a new global hurdle rate, which is generally defined as the minimum rate of return required by investors. Concurrently, the US Treasury will need to issue a growing quantum of t-bills and bonds in the upcoming years to finance the burgeoning deficit of the world's largest economy. Now, one Bitcoin maximalist has posited that the US can leverage Bitcoin's unique characteristics to partially fund those deficits. Prinicpal-Protected Bitcoin Bonds If a gov, […]
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