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Bitcoin Buying Recommended Amidst ‘Looting-the-Treasury’ Phase in US

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Bitcoin Buying Recommended Amidst 'Looting-the-Treasury' Phase in US

Two influential figures in the crypto community have urged their followers to invest in Bitcoin, gold, and silver due to the increasing national debt in the United States. Balaji Srinivasan, an entrepreneur and angel investor, expressed his belief that Bitcoin is the only viable solution to escape the consequences of unsustainable government spending and the potential seizure of assets. Srinivasan claimed that the national debt and wasteful spending in the US are growing at alarming rates that cannot be sustained. Currently, the national debt has reached a record high of $34.5 trillion, which is a 25% increase since 2020.

Srinivasan, who is also a general partner at Andreessen Horowitz (a16z), outlined four approaches to tackle this issue: denying it, attempting to fix it through political means, giving up, or starving the government by using Bitcoin, which cannot be easily seized or manipulated. He suggested that the last approach, although radical, is the most realistic option. Srinivasan highlighted that government deficits are now reaching $10 billion per day and continuing to rise. Similarly, Robert Kiyosaki, a well-known author, advised his followers to prepare for the potential economic consequences and invest in Bitcoin and other assets that store value such as gold and silver.

Srinivasan also raised concerns about the possibility of the government confiscating private assets as economic turmoil approaches. He cited instances such as the seizure of assets from Canadian truckers during protests, freezing Russian assets, and the manipulation of legal systems against prominent figures like Elon Musk and Donald Trump. According to Srinivasan, private property will not be adequately protected by the state in a financially troubled America. He noted that Bitcoin offers a unique advantage as it is not dependent on the state and is resistant to confiscation.

In a bold move, Srinivasan made headlines in March 2023 when he bet $2 million that the price of Bitcoin would reach $1 million by June of that year due to hyperinflation in the US. This week, there will be a significant release of economic and inflation data in the US, including the adjusted core Consumer Price Index (CPI) for February, the Producer Price Index (PPI) for February, and one-year inflation rate expectations. The macroeconomic outlet The Kobeissi Letter suggested that a high CPI inflation report could have a significant impact on the Federal Reserve’s meeting in March. Currently, there is a high probability, as indicated by Chicago Mercantile Exchange data, that the Federal Reserve will maintain interest rates at the current level of 5.5% on March 20, as they have been since July 2023.

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