April 16, 2024

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This is risky for the US, but perfect for Bitcoin

This is risky for the US, but perfect for Bitcoin

US population growth is currently 0 percent. However, this never happened after 1901. Even during the Great Depression, population growth was 0.5 percent.

Why is this dangerous for the US and good for the price of Bitcoin?

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No population growth, bad for America

We are experiencing the slowest US population growth in over 100 years. Let it sink in first. Of course, this is not necessarily a problem for a country, although it is always useful if the population is growing.

But this is especially a problem for the US, because they have a huge government debt. Consequently, there are fewer people to work and keep the country's debt under control.

We also have to take into account that people are getting older due to (technological) advances in health care. That's why the U.S. has a relatively large population of elderly people, while few potential workers are emerging.

You can imagine how America's aging population will cause problems for the national debt.

Troubled for US, Bullish for Bitcoin

This may be a problem for the US, but it is positive for Bitcoin. Why? This is because the US will have to borrow more and more to service its debt in the coming years.

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Fewer people have to work, the government has less revenue and the American economy is under more pressure.

Unfortunately for America, economic contraction or weak growth does not mean the debt mountain will shrink. That debt mountain will remain and may ultimately be the cause of mass flight to the deficit.

During the flight to scarcity, Bitcoin's absolute scarcity of 21 million units is certainly more interesting. Due to this development, more people will choose to use Bitcoin as their primary storage in the future.

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