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Can Cryptocurrencies Pay Off U.S. Government Debt? A Quantitative Analysis
This research paper investigates the hypothesis that cryptocurrencies can be used as a viable mechanism to pay or signicantly reduce the United States national debt. Through a comprehensive quantitative analysis, the study evaluates the scale and market structure of both federal debt and cryptocurrency markets, examines the legal and institutional constraints, and models four distinct courses of action for cryptocurrency-based debt reduction. The analysis reveals a fundamental order-of-magnitude gap between the scale of U.S. debt obligations and the practical capacity of cryptocurrency markets. Even under optimistic scenarios, the maximum plausible contribution from cryptocurrency strategies over a decade is estimated to be between 1.3% and 5.3% of the total federal debt. […]