Can Crypto save the Global debt issue

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Can Crypto save the Global debt issue

$324 trillion in global debt Q1 2025 and the US is casually tacking on another $3.3T over the next decade like it’s no big deal. Meanwhile central bank managers are actually discussing US debt restructuring as a real possibility now. That shift from “never gonna happen” to “yeah maybe” is pretty significant.

Been thinking about Bitcoin’s 21M cap differently in this context. it’s mathematical scarcity in a world where governments can create unlimited money. The whole decentralized thing means it operates outside banking systems that could get wrecked if debt restructuring actually happens.

During actual market stress events, we’ve seen Bitcoin and ETH move with stocks, not against them. March 2020, crypto got dumped just like everything else. So this diversification argument that institutions keep using might not hold up when we actually need it to.

Then there’s the GENIUS Act complicating things. All these new stablecoin regulations could actually limit crypto’s usefulness during financial emergencies. The exact moment people need financial escape routes, policy constraints kick in. Seems counterproductive.

Like if traditional finance melts down, does crypto actually survive that or does it go down with everything else because it still depends on the same underlying systems?Also While tracking portfolio performance through awaken.tax for myself i have realized how much our “decentralized” systems still need centralized infrastructure to function.

given how institutional money flows into crypto and wondering if they’ve thought through these scenarios or if they’re just following the narrative without stress testing the assumptions.

Randula JLK Answered question
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Imagine we, the people, loaning our crypto to world governments and living off the interest! I’m up for some of that!

Randula JLK Answered question
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