By the end of 2019, global debt is expected to surge to $250 trillion led by the United States and China. This current runaway debt model is a perfect illustration of why we need Bitcoin.
Global debts across the board have exploded in the past two decades. The projected numbers for 2019 should worry us all.
Global Debt Projected to Reach $250 Trillion By End of Year
State governments and the private sector at large have been amassing large debts that are unparalleled in history. This year, we are on track to hit another troubling milestone: $250 trillion in global debt.
The numbers are shocking but are even more concerning when you look at the trends in the past two decades. In 1999, global debt in total was just shy of $100 trillion. Since then, it has ballooned by 150% in just 20 years. Given estimates, it does not seem to be slowing down and may reach $500 trillion quicker than many might expect.
Oops! Global debt surged to a record $250tn, led by the US and #China and driven by record-low interest rates. In H1 of 2019 alone, another $7.5tn debt were added. https://t.co/kSP6evV4K3 via @RomanWenzl pic.twitter.com/0V5ScdF3KJ
— Holger Zschaepitz (@Schuldensuehner) November 15, 2019
China and the United States lead the world in government debts, but a growing chunk of the pie is being taken up by private sector firms. It seems that debt has become the rule rather than the exception for virtually all major firms, governments, and banks in our current day and age.
Bitcoin’s Sound Money Solution
The expansion of global debt levels is a direct consequence of our reckless printing of fiat currency. In effect, we have a ‘debt economy’ which is hard to justify as sustainable.
How does Bitcoin offer an alternative? Well, for starters, it has a fixed supply capped at 21M BTC. That means that its value cannot be distorted through more minting, therefore functioning as ‘sound money.’
Such ideas may sound foreign to us now, but they’ll soon prove necessary if we wish to salvage our global economy. When mapping out the long-term trends, it’s clear that a sound currency for the world is desperately needed — in short, this is the perfect case for why we need Bitcoin.
Images courtesy of Shutterstock, Twitter.
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