Can Bitcoin save the US from fiscal collapse? This scenario explains it all.

Can Bitcoin save the US from fiscal collapse? This scenario explains it all.

According to several experts, the idea that the United States could be saved from a fiscal collapse thanks to Bitcoin has gone from speculation to institutional reality with the creation of a Bitcoin Strategic Reserve.

The United States, under President Donald Trump, has laid the groundwork for creating this strategic reserve with bitcoins confiscated in legal anti-crime operations, defining the cryptocurrency as a strategic asset within the national economy. 

The reserve, established by Trump in an executive order signed in March, represents a bold shift toward digital financial innovation. However, it is also generating debate about its potential risks, legal challenges, and political implications, specifically, the consideration of a decentralized cryptocurrency like Bitcoin as a support for fiscal stability in the world's most powerful country. Although the US Bitcoin Strategic Reserve is not yet operational, the administration assures that significant steps have been taken in its development and that specific details about its operation and scope will be revealed soon.

However, the debate over Bitcoin's sovereign adoption goes far beyond regulatory approval or sovereign recognition of a cryptocurrency and its technology. It's about consolidating the United States' global leadership, and in this context, Bitcoin's potential to strengthen the country's economic sovereignty and address its historic fiscal crisis comes into question. 

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Fiscal collapse: debt, inflation and loss of hegemony

According to the report “Can Bitcoin Solve The Sovereign Debt Crisis?” published By Dave Birnbaum at Forbes, the United States is facing an unprecedented fiscal crisis. The national debt exceeds 120% of GDP and is projected to reach $36 trillion in 2025Public spending, which has skyrocketed since the pandemic, is financed primarily with short-term debt, exposing the country to extreme vulnerability to rising interest rates.

This vicious cycle—more debt, more inflation, less purchasing power—has weakened the dollar and eroded U.S. soft power vis-à-vis competitors like China. Traditional solutions, such as austerity or tax increases, have become politically unviable. The system seems trapped in a spiral of monetary decline, Birnbaum comments.

However, in this context, Bitcoin has emerged as a radical alternative. Not as legal tender, but as reserve asset that could reconfigure the country's fiscal balanceThe idea is simple but disruptive: if the Treasury acquires large amounts of bitcoin and allows the dollar to devalue, the appreciated value of the reserves could offset the nominal debt. It's a monetary readjustment reminiscent of the abandonment of the gold standard at Bretton Woods, but with a decentralized and disruptive technology at its center.

From Hyperinflation to Renaissance: Monetizing Debt with Bitcoin

The speculative scenario put forward by Birnbaum and other analysts is as bold as it is disturbing. Suppose the US allows controlled hyperinflation of the dollar while accumulating Bitcoin reserves. As the cryptocurrency appreciates—potentially to multi-billion dollar amounts per unit—the value of those assets could exceed the nation's liabilities.

This process, although chaotic in the short term, could reverse the current debt dynamic. The dollar would lose value, but Bitcoin would act as a counterweight, preserving national assets.

However, while Birnbaum believes that, in this scenario, the US could pay off its debt with Bitcoin, the transition itself would not be simple. Hyperinflation of the dollar would cause global economic dislocations. But those who hold Bitcoin—governments, financial institutions, citizens—could preserve their wealth and lead the reconstruction. By marking its exit from the fiat system, the US could position itself as a leader in the new digital economy.

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This scenario also poses a geopolitical competition: if the US adopts Bitcoin as a reserve, other nations could be forced to do the same. Some would sell Treasury bonds, others would print money to buy Bitcoin. The result would be a massive migration of capital from the fiat system to the Bitcoin ledger.

“If the Bitcoin Strategic Reserve materializes and the U.S. Treasury Department begins purchasing and holding bitcoin, other nations would have to compete by doing the same.”He said. 

A new fiscal era: discipline, investment and expansion

If Bitcoin establishes itself as a global reserve asset, it could usher in an era of unprecedented fiscal discipline. Unlike fiat money, whose supply can expand without limit, Bitcoin imposes a natural constraint: There will only be 21 million units And it is precisely this digital scarcity that would force governments to operate within the limits of solvency, Birnbaum said, eliminating reckless deficit spending and monetary distortions.

In this new paradigm, capital would be allocated more efficiently. Long-term investments—in infrastructure, energy, space exploration—could be financed with Bitcoin, without relying on inflationary cycles or monetary manipulation. The financial system would become more transparent, more resilient, and less susceptible to political whims.

Furthermore, the "Cantillon effect," which favors those who receive newly printed money first, would lose relevance, since in a Bitcoin-based environment, wealth creation would depend more on productivity than on proximity to financial power.

In short, this new model represents not only a fiscal solution, but a structural transformation of modern capitalism. Bitcoin, as a reserve asset, could become the catalyst for a fairer, more efficient, and more ambitious economy, according to the expert.

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The bold leap into the era of digital money

The idea that Bitcoin could save the US from fiscal collapse is no longer just a libertarian fantasy. According to Birnbaum, with the creation of a Bitcoin Strategic Reserve, the US government is taking the first step toward a radical monetary readjustment, but what's at stake is not just fiscal stability, but global leadership in the digital age.

This scenario blends geopolitics, technology, and economics into a complex equation that invites reflection on the very future of money. And while we still don't know whether we're merely witnessing a strategic maneuver to avoid a financial collapse or the end of the dollar as the dominant currency, the truth is that monetary systems have never been static; they evolve as circumstances demand. In this sense, Bitcoin, with its limited supply and resistance to censorship and manipulation, could be the key to a new chapter in the global economy.