Bitcoin and the U.S. Fiscal Reckoning
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Bitcoin and the U.S. Fiscal Reckoning

Avik Roy
National Affairs, 2021
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As economies enter post-pandemic times, consumers and companies are facing price increases, and some investors are deploying capital into bitcoin as a means of protecting their purchasing power and financial holdings. Commentator Avik Roy assesses the opportunities for bitcoin – as a viable store-of-value asset and an inflation mitigation tool – in the context of current US fiscal conditions. Corporate executives, business owners and bitcoin stakeholders will appreciate this informative and wide-ranging essay on the importance of digital assets.

Summary

In inflationary times, some investors see a sound money alternative in bitcoin.

In 2008, Satoshi Nakamoto delivered the distributed ledger innovation, bitcoin, to the world. For Nakamoto, one of the fundamental reasons for the introduction of the digital money involved a deep distrust of sovereign currencies. At that time, US debt had reached $10 trillion.

The ascendance of bitcoin since then coincides with a sharp rise in US federal borrowing. Today US debt stands at $29 trillion, and the Federal Reserve has drastically increased the supply of dollars in circulation. Holders of US dollars are increasingly concerned about the prospects of a devalued currency and ...

About the Author

Avik Roy is president of the Foundation for Research on Equal Opportunity.

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