$37 trillion in national debt looming! Can Crypto Assets truly solve the U.S. debt crisis? The Bitcoin bill and the illusion of stablecoin salvation.

U.S. national debt continues to soar to $37 trillion (over $108,000 per capita), with the White House's spending cuts and tax increase policies yielding little effect. Balaji Srinivasan from the crypto industry calculated based on government promises that the real debt reaches $175.3 trillion. Faced with this "capitalist hell", Crypto Assets are seen as a beacon of hope: the VanEck model shows that if the "Bitcoin Bill" is implemented (buying a million BTC before 2029), by 2049 Bitcoin reserves could cover 18% of the national debt; global demand for stablecoins could also boost U.S. debt purchasing power. However, the strong dollar paradox, policy contradictions, and the nature of the debt scale leave the feasibility of crypto solutions shrouded in uncertainty.

Debt Abyss: 37 Trillion is Just the Tip of the Iceberg

• Official data is alarming: US national debt reaches $36.99-37.21 trillion, per capita debt is $108,000.
• Invisible Debt Shock: Cryptocurrency industry figure Balaji Srinivasan cites the FY 2024 report indicating that after accounting for government commitments such as social security and health insurance, the true debt amounts to 175.3 trillion dollars.
• Historical Debt Engine: Events such as the Vietnam War, the 2008 financial crisis, and COVID-19 relief efforts have continued to push up debt, and the era of negative growth has long since ended.
• Ghost of Default Lingers: Greek economist Yanis Varoufakis warns that "debt is to capitalism what hell is to Christianity," and the historical facts of government shutdown crises indicate that the risk of default always exists.

Policy Dilemma: The Dilemma of Tariffs and a Strong Dollar

• Debt Ceiling Magic: Congress repeatedly sets a debt ceiling and breaks records, with the latest increase in May 2025 of $4 trillion.
• Dollar Hegemony Paradox:
• The status of the global reserve currency boosts the demand for the US dollar, which in turn weakens the competitiveness of US exports.
  • Trump attempted to weaken the dollar to boost exports, but the Federal Reserve's refusal to cut interest rates conflicts with his military spending expansion and tax reduction plan ("One Big, Beautiful Bill").
• Illusion of Increased Tariff Revenue: Although tariff revenue reached $29 billion in July, it accounted for less than 3% of federal revenue, and the costs are passed on to domestic consumers. Increases in spending on defense and other areas further offset the revenue gains, making a negligible impact on debt reduction.

Crypto Redemption: Bitcoin Treasury and the Utopia of Stablecoins

• "Bitcoin Act" Rhapsody:
  • Senator Cynthia Lummis proposed to purchase 1 million Bitcoins with the budget before 2029.
  • VanEck model predicts: BTC annualized increase of 25% will outperform the 5% growth of government bonds, by 2049 21 trillion Bitcoin reserves can cover 18% of debt (at that time, the debt amount will be 116 trillion).
  • Reality Check: The U.S. government shows no signs of procurement, and a 25% annual return is a high-risk assumption.
• The Secret Infusion of Stablecoins:
• The global demand for stablecoins forces issuers to increase their holdings of U.S. Treasuries and dollar reserves, indirectly supporting the government bond market.
  • Asset tokenization or reducing banking costs, releasing funds to increase holdings of US Treasuries.
• Strong Dollar Double-Edged Sword: The demand for the dollar driven by stablecoins will further weaken export competitiveness, falling into a "liquidity trap."

Conclusion: Technological Optimism Cannot Break the Structural Financial Dilemma The debt solutions envisioned by cryptocurrency advocates—whether the myth of the appreciation of the Bitcoin treasury or the demand for U.S. Treasuries driven by stablecoins—still appear idealistic in the face of a $37 trillion (or even $175 trillion) debt behemoth. The tariff tactics of the Trump administration and the dollar game have fallen into a contradictory policy maze, while the "Bitcoin Act" seems more like a mirage. The essence of the debt crisis is a structural problem of lost fiscal discipline and inflated welfare commitments. Crypto Assets may serve as a financial innovation tool to alleviate pressure in certain areas, but they are unlikely to replace fundamental fiscal reforms. When "robbing Peter to pay Paul" becomes the norm, perhaps, as Balaji said: this debt, the U.S. will never pay off.