Forbes: US $3.9 trillion in debt "crisis" might trigger a bitcoin boom

Original title: U.S. Dollar “Collapse” - A $39 Trillion Debt “Crisis”

By Billy Bambrough, Forbes
Original: AididiaoJP, Foresight News

Since the beginning of the war in the United States against Iran, Bitcoin has risen by 30 per cent (two huge shocks are currently approaching bitcoin prices)。

However, the price of bitcoin is still far from its historic high of $126,000 in 2025, despite US Secretary of Defense Peter Hegess saying that China is secretly hoarding bitcoin。

Now, as traders prepare for the upcoming White House Bitcoin, the legendary billionaire Ray Dario warns that the US dollar is shaking and on the verge of collapse. At the same time, Morgan Chase Analyst predicts that funds will move from large-scale gold rotations to bitcoin。

The United States dollar is suffering a continuing depreciation, and some fear that this could turn into a total collapse — thus boosting gold and bitcoin prices。

"The United States now spends $7 trillion a year, with revenues of about $5 trillion, and therefore spends 40 per cent more than revenue," Ray Dario, founder of the world's largest hedge fund, said when he received the "Interesting Times" podcast。

“This deficit has been going on for some time, so its debt is about six times its income. Historically, this situation is problematic.”

MAY 11TH UPDATE: FOLLOWING REPORTS THAT US TREASURY DEBT EXCEEDED 100% OF GDP, MARK GOLDWIN, SENIOR VICE PRESIDENT OF THE RESPONSIBLE FEDERAL BUDGET COMMISSION, WARNED THAT THE US WAS ENTERING THE DEBT SPIRAL。

"When this happens, at some point you get into this debt spiral," Goldwin told The New York Times. "The only way to stop it is through some kind of systemic shock."

MEANWHILE, THE CONGRESS BUDGET OFFICE (CBO) REVEALED LAST WEEK THAT THE US TREASURY HAS PAID $628.0 BILLION IN NET INTEREST THIS YEAR TO SERVICE DEBT。

"THE NET INTEREST EXPENDITURE ON PUBLIC DEBT INCREASED BY $41 BILLION (OR 7 PER CENT) BECAUSE DEBT WAS LARGER THAN IT HAD BEEN SEVEN MONTHS BEFORE THE FINANCIAL YEAR 2025, AND LONG-TERM INTEREST RATES WERE HIGHER. THE DECLINE IN SHORT-TERM INTEREST RATES PARTLY EASED THE OVERALL INCREASE IN INTEREST PAYMENTS,” CBO SAYS。

After falling to $400,000 per ounce in April, the price of gold has rebounded in recent weeks, with analysts pointing to inflationary pressures and debt spirals as driving its rise。

“High inflation, rising sovereign debt and continued global uncertainty continue to increase the attractiveness of gold. The market does not need a new catalyst — the existing catalyst is always there,” said Max Baecker, President of American Hartford Gold (AHG), in his email commentary。

In recent years, United States debt has skyrocketed as a result of large-scale government spending during the New crown epidemic and the blockade, while the rapid increase in interest rates to contain inflation has further increased the debt-servicing costs of the $39 trillion debt build-up。

"So when we look back at history, we see that at all these times all the French currencies are devalued and the gold rises," Dario says, and points out that gold is now the "second largest reserve currency of central banks."。

When asked whether the economy would move towards “crisis and collapse”, Dario said that the future “financial crisis would mean very limited spending capacity”, adding that he “does not think that any French currency would be an effective means of storing wealth”。

Dario’s warnings coincided with the views of Wall Street’s giant Morgan Chase analyst, who argued that “the devaluation trade is moving from gold to bitcoin”。

The price of gold has doubled in the past two years, rising with silver, as traders are betting on persistent inflation and United States Federal Reserve banknotes will devalue and dilute the dollar。

In a report seen by The Block, Morgan Chase analysts, led by Managing Director Nikolaos Panigirtzoglou, stated that they saw Bitcoin (known as "digital gold" because of its ceiling and immutability) surpassing gold as an instrument of devaluation trading in Iran after the conflict, as Bitcoin ETF inflows exceeded gold ETF。

In March this year, another billionaire investor, Stanley Drukken Miller, predicted that in 50 years' time the dollar would no longer be the world reserve currency — possibly replaced by bitcoin or encrypted currency。

"We're doing everything we can to destroy it," said Droken Miller, which he described as a "debt bomb" that might be referring to the soaring United States budget deficit. The dollar "may live longer than me, but I wonder if it will still be a reserve currency in 50 years."

Druken Miller calls the dollar the "cleanest dirty shirt" and says he doesn't know what might replace the dollar as a world reserve currency, but he may be "some sort of encrypted thing I hate," which is consistent with his first prediction in 2021。

In addition, Tesla billionaire Erón Masque also predicted (on several occasions) the end of the dollar, prompting speculation that he was preparing for a bitcoin move。

Mask warned that the world was moving towards a post-franco-currency era, claiming that "energy is the real currency", which triggered speculation among Bitcoin supporters that he was secretly supporting encrypted currency。

At the same time, former Federal Reserve Chairman Janet Jerome warned that US President Donald Trump might be pushing the dollar toward “porous inflation” – a situation that some believe could trigger bitcoin prices。

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