In a recent interview In an interview with Fox News, former President Donald Trump expressed support for using bitcoin as a tool to help pay off the United States’ $35 trillion national debt as he positions himself for a potential presidential reelection in 2024, while signaling a notable shift in the Republican Party’s stance on digital assets.
Trump's strategy to deal with $35 trillion debt with bitcoin
“Cryptocurrency is a very interesting thing, very high-level in some ways, very high-level intellectually,” Trump said. The former president acknowledged the rapid growth and adoption of cryptocurrencies globally, warning that if the United States does not embrace the technology, crypto-stance-following-trumps-speech/” target=”_blank”>countries like China He will go ahead and take the initiative.
Trump's recent comments echo proposals from Republican figures such as Wyoming Senator Cynthia Lummis and former House Speaker Paul Ryan, who have raised the issue of bitcoin-be-the-us-trump-card-against-china/” target=”_blank”>idea of the US government investing in bitcoin holdings to help pay off the national debt.
While Trump didn’t offer any new details, he did hint at the possibility of the government simply “cutting them a little check in cryptocurrency” or “giving them some bitcoin” as a way to pay off the $35 trillion debt.
Genesis activates $1.6 billion worth of btc and eth transfers
bitcoin, the largest cryptocurrency by market cap, briefly fell below the $63,000 level, hitting a weekly low of $62,440 as news of Genesis distributions hit the market. According to the advertisement In a filing by Genesis on August 2, the company has begun making distributions to creditors pursuant to its Chapter 11 bankruptcy plan.
As part of the initial distribution, btc holders will receive 51.28% of their holdings in kind, while eth holders will receive 65.87% of their eth holdings. On the other hand, holders of other altcoins, excluding Solana (SOL), will receive an average of 87.65% of their holdings, while Solana holders will receive 29.58% of their holdings.
Distributions have already begun, with wallets linked to Genesis Trading moving 16.6K btc ($1.1 billion) and 166.3K eth ($521.1 million) in the last hour, x.com/ArkhamIntel/status/1819375635539616132″ target=”_blank”>according to the Arkham market intelligence platform.
Interestingly, billionaire investor and cryptocurrency advocate Mark Cuban has… x.com/ArkhamIntel/status/1819390407190450307″ target=”_blank”>reportedly received $19.9 million in eth from Genesis' bankruptcy, further highlighting the implications of the company's downfall.
The firm also revealed that creditors have established a $70 million litigation fund to pursue claims against various third parties, including Digital Currency Group (DCG), Genesis’ parent company.
At the time of writing, the market’s largest cryptocurrency has managed to reclaim the $63,100 level after falling towards the $62,000 zone on Friday. btc is currently down 0.8% on the 24-hour time frame.
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Featured image of DALL-E, chart from TradingView.com
