Dennis Porter Suggests Student Loan Forgiveness Program With Bitcoin

Dennis Porter suggests a student loan forgiveness program that will use Bitcoin. The alternative forgiveness program was proposed by Porter, who is the CEO of Satoshi Action Fund recently. This proposal encompasses a radical alternative to President Biden’s student debt forgiveness plan.

Instead of forgiving $10,000 in student debt, Biden should have given each person $10,000 in #Bitcoin, locked up for 10 years in a smart contract that pays off the remaining balance of the student debt once it’s released.

Problem solved, no more debt.

— Dennis Porter (@Dennis_Porter_) August 24, 2022

The former political advisor proposed that the US government deliver $10,000 in BTC locked in a smart contract to each indebted people. Porter estimates that by the conclusion of the lock-in term, the dollar equivalent value will be more than enough to repay the loan debt.

Dennis Porter suggests a student loan forgiveness program that will use BTC, but it is very unlikely that this plan will ever unfold. Meanwhile, the crypto community provided input on Porter’s proposal.

Biden’s Administration Is Under Fire

The entire amount of student debt in the United States, including federal and private loans, is $1.75 trillion. According to data, the problem affects 45 million Americans, or roughly one in every seven.

On August 24, the White House released a student loan relief plan that included a $10,000 debt cancellation for anyone earning less than $125,000 per year. While low-income families that obtained Pell Grants are eligible for $20,000 in debt relief.

President Biden stated that the relief measures will assist Americans in debt management, with substantial economic advantages as a result.

“To finally think about buying a home or starting a family or starting a business. And by the way, when this happens, the whole economy is better off.”

Overall, the mainstream media has presented the tale as a good occurrence. The Financial Times, for example, discounted the prospect of inflation, calling the rescue effort “an economic nothing burger.” Meanwhile, Reuters speculated that it may result in price deflation.

However, detractors have raised various concerns about the initiative. Matt Rinaldi, chairman of the Republican Party of Texas, stated that the money must come from someplace, and that “truck drivers and plumbers” will foot the cost.

Harvard has a $42 billion endowment. Yale’s is $31 billion. But Biden will tax truck drivers and plumbers to pay the student loans that built those empires.

— Matt Rinaldi (@MattRinaldiTX) August 23, 2022

Similarly, political analyst Ben Shapiro jumped in to preach personal responsibility and, like Rinaldi, slammed the concept of collectively bailing out individuals who acted financially recklessly.

I have a controversial idea about paying off student loan debt: don't take out debt you will likely be unable to pay off, and don't ask others to pay off your debts.

— Ben Shapiro (@benshapiro) August 23, 2022

BTC To The Rescue Or Not?

Adding fuel to the already raging political issue, Porter proposed that the $10,000 owed to qualified individuals be used to purchase Bitcoin, which is then locked in a smart contract that allows access after ten years.

After the lock-in period expired, the monies would be utilized to pay down the individual’s student debt.

Instead of forgiving $10,000 in student debt, Biden should have given each person $10,000 in #Bitcoin, locked up for 10 years in a smart contract that pays off the remaining balance of the student debt once it’s released.

Problem solved, no more debt.

— Dennis Porter (@Dennis_Porter_) August 24, 2022

In response to Porter’s proposal, @DavidShares termed it a “terrible take” since it would compel the US government to own BTC.

Others questioned the usage of smart contracts and even if Bitcoin enables such functionality based on the premise of Bitcoin maximalists supporting only self-custodial spot BTC.

Porter stated that smart contracts constitute the “heart” of the Lightning Network, and sent a link to material on Hash Time-Locked Contracts.

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