Two influential figures in the crypto community have urged their followers to invest in Bitcoin (BTC), gold, and silver, citing the growing national debt in the United States as a major risk. Balaji Srinivasan, an entrepreneur and angel investor, took to X on March 11 to argue that Bitcoin is the only viable solution to escape the consequences of unsustainable government spending and potential seizure of assets. Srinivasan, who was formerly the chief technology officer at Coinbase, shared his thoughts with his 994,000 followers, stating that the country is currently in the phase of looting the treasury as part of an imperial collapse. He emphasized that government debt and wasteful spending are increasing at an alarming rate, with the U.S. national debt reaching a historic high of $34.5 trillion, a 25% increase since 2020.
Srinivasan, who is also a general partner at Andreessen Horowitz (a16z), outlined four possible approaches to address this issue: denying its existence, attempting to fix it through political processes, giving up, or simply taking advantage of the situation. He argued that the last option is radical but realistic, highlighting that government deficits are currently at $10 billion per day and growing.
Robert Kiyosaki, the author of “Rich Dad Poor Dad,” echoed Srinivasan’s sentiments and advised his followers to be prepared by investing in assets that store value, such as Bitcoin.
In addition to the financial concerns, Srinivasan also warned about the possibility of the state confiscating private assets as the financial reckoning approaches. He cited examples of asset seizures from Canadian truckers during protests, freezing of Russian assets, and the use of Delaware and New York against Elon Musk and Donald Trump.
Srinivasan made headlines in March 2023 when he famously bet $2 million that BTC would reach $1 million by June of that year due to hyperinflation in the United States.
As the United States awaits the release of significant economic and inflation data, Srinivasan’s and Kiyosaki’s warnings gain additional relevance. The upcoming figures include the adjusted core Consumer Price Index (CPI) for February, the Producer Price Index (PPI) for February, and one-year inflation rate expectations.
The Kobeissi Letter, a macroeconomic outlet, commented that a high CPI inflation report this week could greatly impact the March Federal Reserve meeting. According to data from the Chicago Mercantile Exchange, there is a 97% probability that the Federal Reserve will keep interest rates unchanged on March 20. Currently, interest rates in the U.S. stand at 5.5%, where they have remained since July 2023.
In conclusion, Srinivasan and Kiyosaki’s calls to invest in Bitcoin, gold, and silver serve as a response to the mounting national debt in the United States and the potential risks it poses to individuals’ assets. As economic data is set to be released, the impact on the market and the decisions of the Federal Reserve will be closely watched.