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Serious question. Suppose Biden were to adopt BitCoin as the national currency. How would he be able to spend 4 trillion in Bitcoins? The final idea is to stop government spending(Aggregate Demand) in times of crisis and make them worst?

The US is printing money to get us out of the current t economic slow down. This can be done because we can create more money.

Some argue that inflation is not really a concern (see MMT)[MMT wiki](https://en.m.wikipedia.org/wiki/Modern_Monetary_Theory)

But in a future with Bitcoin how would this be resolved?



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13 Comments

  1. If Biden were to adopt Bitcoin as the national currency… how would he spend $4 trillion what?? Dollars???? Why would he spend dollars if it’s not the national currency??

    Your question doesn’t even make sense from a logic perspective.

  2. Hypothetically, the US Govt could still hold a bond auction in the form of bitcoin paying x% interest. The proceeds (bitcoin) of that debt issue could be utilized for fiscal stimulus. The endless cash creation and low interest rate environment (set by the federal reserve) that allows the US Govt to issue debt cheaply would be no more.

  3. – don’t get mixed up between inflation of consumer prices vs devaluation of fiat relative other assets such as BTC, stocks, real estate. The “low inflation” often cited refers to consumer prices.

    – the government won’t adopt BTC, there will always be the alt coin called USD or it’s CBDC incarnation that they can control, just that it’s worth relative to BTC will decline over time, faster when they issue more USD.

  4. This is not a serious question but the answer is to raise taxes. Printing money hurts all of us especially the poor people and fixed income. The less popular choice is to raise taxes on the rich and corporations to pay their share.

  5. The state isn’t going to just abandon the mechanism that allows them to maintain control.

    Also, only 21 million BTC will ever be mined and that won’t be complete for another 120 years. So what do you mean by 4 trillion in BTC?

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