Jordan Peterson Touts Bitcoin Amid Soaring U.S. Debt

Jordan Peterson doubles down on Bitcoin as a lifeboat amid the rising U.S. debt tsunami, set to double to $70T by 2034.

Dr Jordan Peterson posing with a gigantic Bitcoin.
Created by Gabor Kovacs from DailyCoin
  • U.S. national debt hits $35T, growing $1T every 100 days.
  • Bitcoin advocates urge governments to adopt BTC
  • IMF claims runaway national debt can be sustainable.

The U.S. national debt represents the total amount owed by the federal government due to deficit spending on programs like social security, health, and debt interest payments. As of June 2024, this debt burden has ballooned to a staggering $34.8 trillion, and growing at the rate of $1 trillion every 100 days on current spending rates. 

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Fears grow over the risk of default, unsustainability, and burdening future generations with insurmountable debt. Adding his voice to these concerns, outspoken psychologist Jordan Peterson believes the solution lies in Bitcoin.

Jordan Peterson Champions Bitcoin

With national debt rising at an alarming rate, Wall Street Silver predicted that the national deficit would skyrocket to between $60-70 trillion by 2034. In response, Jordan Peterson noted that the current debt level equates to $100,000 per U.S. citizen, declaring it “Looks like time to buy more @Bitcoin.”

With Bitcoin’s supply capped at 21 million coins, advocates tout it as the antithesis of unchecked money printing and debt-fueled growth that define modern economic policy. However, it remains unclear how Bitcoin could solve the national debt crisis in a practical sense.

Some have proposed backing the U.S. dollar with Bitcoin reserves akin to a digital gold standard, with every dollar issued accounted for in BTC. While potentially bullish for Bitcoin’s price, this would do little to reduce existing debt levels and also limit economic growth potential.

Others suggest adopting Bitcoin as an alternative parallel currency running alongside the dollar. However, this introduces complications related to the dual pricing of goods and services, while BTC’s low transactions per second and long finality make it an impractical payment method. Moreover, many believe the buggy and expensive-to-join Lightning Network has failed as a BTC-based payment solution.  

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With no easy solutions to defusing the spiraling debt problem, attention shifts to the IMF’s perspective that national debt may not be as concerning as thought.

Governments Can Print to Infinity

In a 2018 paper for the IMF, author Philip Barrett put forward the contrarian idea that rising national debt is not necessarily a looming catastrophe. 

Barrett’s statistical models demonstrated that for advanced economies, public debt can theoretically sustain itself indefinitely so long as the government can comfortably service interest payments from current income and interest rates remain at or below nominal gross domestic product (GDP) growth rates.

However, U.S. debt interest repayments are becoming increasingly unaffordable, with servicing costs now exceeding the budget for national defense. Nonetheless, U.S. GDP is projected to increase 48% to $41.6 trillion by 2034, with consecutive annual growth.

On the Flipside

  • Jordan Peterson is criticized for going against mainstream narratives, including criticising wokeism and disputing the scientific consensus on climate change.
  • The New York Times forecasts the U.S. national debt to reach $56 trillion by 2034, contrasting with Wall Street Silver‘s prediction of $60 to $70 trillion.
  • One trillion one-dollar bills stacked together would measure 67,866 miles, enough to wrap around the equator 2.72 times.

Why This Matters

Peterson’s stance underscores how even mainstream voices are losing faith in fiat currencies amid ballooning debt levels. His endorsement lends further legitimacy to Bitcoin.

Presidential hopeful Donald Trump eyes Bitcoin to tackle U.S. national debt:
Trump Mulls Bitcoin to Tackle $35T National Debt Burden

Crypto market sell-off triggers flight to Bitcoin safety:
Bitcoin Dominance Spikes to Nine-Week High as Markets Bleed

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Samuel Wan

Samuel Wan is a finance professional turned crypto journalist, known for his insightful reporting on market trends, regulatory changes, and technological developments within the digital asset industry. His ability to simplify complex concepts and report the facts has made him a trusted source in the crypto community. Beyond his writing, Samuel is an active mountain biker and gamer.