Bitcoin’s Moment Is Now As US Debt Train Hits Full Speed: Expert

Lyn Alden, one of the main macroeconomic strategists and financial analyst, has risen to the stage of the Bitcoin 2025 conference with a Stark warning: the tax deficit of the United States is no longer a problem that can be tackled; It is an unstoppable force. Alden’s address focused on growing structural issues within the American economy, in particular the government’s escape expenditure, and the inevitable impact that will have on the prices of activities, in particular the activities scarce as Bitcoin.

Bitcoin vs. Unstoppable US debt

“Nothing stops this train,” said Alden, underlining the seriousness of the situation. He continued to explain how the US tax deficits and unemployment rates, which once moved in tandem, have started to disacch over in recent years. “In recent years, since 2017, we have seen a mishap. Unemployment rates have decreased, but the federal deficit has increased to 6-7% of the GDP.” This change claims Alden, reports a new tax reality that is now irreversible.

Alden’s analysis showed that this trend was exacerbated by the pandemic, but it was already in motion long before. He indicated the historical data, underlining that during most of the periods in the past, when unemployment has increased, even federal deficits, but this model has now changed. “This is a new era,” said Alden. “The misfortune of the unemployment deficit is something that has not been seen for decades.”

The implications of this fiscal misfortune are significant for investors, in particular those who try to protect their wallets from the erosion of purchasing power caused by inflation. Alden turned his attention to the wider patrimonial landscape, showing how Gold and Bitcoin responded to the changing economic climate. He showed a graph that compares gold prices with real interest rates, illustrating a strong historical correlation between the two.

Reading Reading

Gold and Bitcoin are the two primary reserve activities that compete with each other on that staircase, “explained Alden.” When real interest rates are high, investors are attracted to return to the dollar and treasure system. But when these rates are not high enough to keep up with inflation, gold and bitcoin shines. “

Alden has observed that since 2022 the correlation between gold prices and real rates has broken down, a development that further complicates the economic landscape. “We entered a new environment in which both Gold and Bitcoin continued to increase despite the increase in interest rates,” he underlined, highlighting the growing divergence between traditional financial activities and alternative activities such as Bitcoin. “If I had asked someone five years ago if Bitcoin could hold his interest rates at 4-5%, most would have said no. Here I am, here we are, with Bitcoin for a value of over $ 100,000 per coin.”

Because Bitcoin wins

For Alden, this move is not simply theoretical; It is proof of a deeper and more rooted tax dynamics. He argued that when the debt of the United States government reaches unsustainable levels, traditional methods to control inflation, such as the collection of interest rates, have become ineffective. “When interest rates increase, ironically increase the federal deficit at a faster pace than they slow down the growth of credit in the private sector,” he explained. “The problem is that we no longer have the brakes attached to the system. The tax train is moving at full speed and there is nothing going on to slow it down.”

Alden has also explored how the policies of the Fed interest rate are no longer increasingly able to control credit growth in the face of the increase in government debt. “In the past, when the federal debt was low, the increase in interest rates could effectively slow down the growth of credit. But now, with the federal debt that exceeded 100% of GDP, each increase in rates accelerates the deficit”. This, he claimed, illustrates the structural weakness of the current system: one in which the government is forced to continue to increase its debt, as there is no practicable way to slam the tax burden.

Reading Reading

In stark contrast to the tax system of the United States, Alden presented Bitcoin as a final coverage against these inflationary pressures. “Bitcoin is the opposite of this system,” he observed. “Unlike the US dollar, which is constantly degraded by inflationary policies, Bitcoin is an asset defined by absolute scarcity. You cannot create more. And that scarcity is what makes Bitcoin an attractive value of value in an era of instability of Fiat.”

Alden also supported Bitcoin’s growing relevance in a world in which traditional financial mechanisms falter. “The rules governing the economy for the past century no longer work,” he said. “We have crossed our gaze. We are in a new era in which nothing can stop the tax train. But Bitcoin, with his book Mastro transparent and the fixed supply, stands out as a good that cannot be manipulated or swollen.”

In conclusion, Alden warned that the tax trajectory of the United States is set for the long range. “For the next decade, we will perform very large tax deficits in the United States, almost regardless of what happens,” he said. “Nothing can significantly decelerate this trend. The only way to protect you is to have the scarce resources of the highest quality. And Bitcoin is on top of that list.”

At the time of the press, BTC exchanged $ 105,822.

First floor image created with Dall.e, graphic designer by tradingview.com