U.S.Faces Hidden Debt Crisis: $175 Trillion in Unfunded Liabilities
The U.S.might be closer to a financial crisis than many realize. Officially, the national debt is $36.2 trillion.however, former Coinbase CTO Balaji Srinivasan argues the true figure is much higher.
In a recent X post, Srinivasan claims the real debt is $175 trillion. This includes future obligations like Social Security and Medicare. These are not on the balance sheet but are legally binding. The 2024 Financial Report supports this,
Global Economic Shifts and the Rise of Alternative Assets
The U.S. national debt is projected to exceed 100% of GDP by 2025, according to the Kobeissi Letter. This growing debt burden is a critically important concern for the economy.
The dollar’s dominance is also waning. Its share in global foreign exchange reserves has dropped from 66% in 2014 to 57.4% by Q4 2024. Central banks are diversifying, increasing their gold and euro holdings.
This shift reflects eroding confidence in the dollar. The U.S.faces persistent inflation due to structural cost pressures.In 2024, the country imported goods worth over $3.3 trillion, with a trade deficit of $1.2 trillion.A weaker dollar raises import costs, especially for energy and electronics.
Interest payments on federal debt are rising. By 2025, they are expected to reach $952 billion, or 18% of federal revenue. This reduces fiscal space for other priorities.
Economic growth is slowing. the Philadelphia Fed’s Q2 2025 survey projects real GDP growth at 1.4%. Investment activity is also weakening due to supply disruptions and high borrowing costs.
The Fed’s options are limited. Lowering rates could weaken the dollar further, while raising rates could slow the economy. This creates a challenging policy environment.
Bitcoin, gold, and other hard-capped assets are gaining popularity as alternatives. Spot Bitcoin ETFs in the U.S. have attracted over $135 billion in assets. Bitcoin’s market cap reached $111,970 in May 2025. its volatility has decreased, making it more attractive for multi-asset portfolios.
Gold remains a key beneficiary. Central banks purchased over 1,000 tonnes in 2024 and plan to add more in 2025. These assets offer a hedge against fiscal and monetary strain.
Bitcoin and Gold: Future Prospects in Global Wealth
Experts predict that cryptocurrencies and gold will play a bigger role in global investments.Bitcoin, for instance, might reach a market cap of $5 trillion. This would make it a small yet significant part of the world’s wealth.
Gold remains popular too. Central banks and investors still want it. They see it as a way to protect their money’s value. This is especially true as currencies lose strength.
With growing debt and questions about the dollar’s role, demand for these assets may rise. This trend could continue unless there’s a major change in financial policies.
- bitcoin could hit a $5 trillion market cap.
- Gold benefits from central bank interest and investor demand.
- Both assets may see increased demand due to rising debt and currency issues.
These forecasts show that Bitcoin and gold are becoming more crucial. They offer ways to protect wealth in uncertain times. For more insights, check out this detailed analysis.
