The One Trillion Factor: Can It Trigger BTC To Grow More?

The latest cryptocurrency news show that the market has shown good signals overnight and may hit the $250 billion combined market cap if the influx of capital continues. Nowadays, we see all kinds of analyses on BTC and cryptocurrencies – and the concept of economic analyses is getting more and more popular. According to a new report, the one trillion factor which is related to US debt may trigger Bitcoin (BTC) to grow substantially more in the future.

In more detail, the one trillion factor basically revolves around the fact that the United States national debt is expected to hit $12.2 trillion by 2029. Considering the other fact which shows us that the US national debt will never be less than $1 trillion in a year again, many analysts think that Bitcoin can take advantage of this and surge in the future.

On another note, this shows us that even the largest economies are nowadays vulnerable to extreme mismanagement. The US deficit is growing faster than anyone could have predicted and analysts believe that it will continue doing so. This could act as a powerful incentive for even more people to research Bitcoin.

Meanwhile, the one trillion factor also shows that the government of the United States is now spending more than it brings on. This is nothing new if we see that this is the case with most of the other governments. However, the US Congressional Budget Office estimates that the Trump Administration ran a deficit which was as high as $960 billion in 2019. The outlook for the future also looks shady if we see this trend, and the agency expects the government to borrow more than $1 trillion per year from now on.

The chief investment officer (CIO) at Ikigai Asset Management, Travis Kling, recently pointed out in the following in a tweet which you can see below.

This is a chart from @USCBO showing that the US deficit will never be less than $1tn a year again.

Never. Less than. A trillion. A year.

Bitcoin is an insurance policy against monetary and fiscal policy irresponsibility from central banks and governments globally. pic.twitter.com/pnOAG1bwuY

— Travis Kling (@Travis_Kling) January 21, 2020

The Bitcoin price news are good now but the governments running a growing deficit need to eventually do something about it.

As experts say, they have a few options open to them. The first one is to raise taxes and lower cut public spending. The second one allows the government to pay its creditors on the cheap by taxing all users of the national currency.

The one trillion factor could therefore encourage more people to seek a hedge. Bitcoin may well go to fill the niche more effectively as it is more portable, divisible and easy to store.