Can Gold, Bitcoin, or Stablecoins Really Fix America’s $37 Trillion Debt?
America’s national debt has blown past $37 trillion, and interest payments alone are becoming a massive burden on taxpayers. In 2025, the government will collect about $5 trillion in taxes, but it plans to spend $7 trillion, which means borrowing another $2 trillion just to keep the lights on. With rising interest rates since 2020, that borrowing gets even more expensive. And how does the government handle it? By printing money through the Federal Reserve, which devalues the dollar and fuels inflation.
Now, policymakers are floating some unusual ideas to manage the debt gold revaluation, Bitcoin reserves, and even new stablecoins. Let’s break down what these moves mean and why you should pay attention.
One proposal is to revalue America’s gold reserves. Right now, the U.S. officially values its 261 million ounces of gold at just $42.22 per ounce, or about $11 billion total. But gold trades around $3,300 today. If the government revalued its gold to market levels, the paper value would jump to $860 billion. That creates an accounting trick: the Treasury could pledge gold certificates to the Fed and unlock $800 billion in cash. This isn’t new FDR did the same thing in 1934, which created $3 billion in new spending power at the time. The question is whether revaluing gold is just a short-term patch for a long-term debt addiction.
Another strategy already in motion is a strategic Bitcoin reserve. In March 2025, President Trump signed an executive order to hold seized cryptocurrency assets in reserve. The U.S. reportedly holds between 30,000 and 200,000 Bitcoins. At $100,000 per coin, that could be worth billions. Just like gold, Bitcoin certificates could be pledged to the Fed for cash to pay down debt or stimulate the economy. But the plan is to hold Bitcoin long-term instead of selling it too early something the government has already done before, missing out on about $17 billion in gains.
Then there’s the Genius Act, passed in July 2025. This law lets the government issue stablecoins pegged to gold or Bitcoin as an alternative to the U.S. dollar. The idea is to expand the money supply without directly increasing debt. Sounds clever, but it comes with risk: if gold or Bitcoin prices fall, those stablecoins lose value, and the Fed’s balance sheet weakens. Imagine gold dropping to $1,500 or Bitcoin crashing to $50,000 that would send shockwaves through global markets and further erode trust in the dollar.
That’s the real danger: asset price volatility. Pegging government balance sheets to commodities or crypto means tying the stability of the entire financial system to assets that can swing wildly. If the Fed has to print more money to cover those swings, inflation could spiral higher. And global trust in the U.S. dollar the world’s reserve currency could weaken.
History shows us how fragile these ties can be. Nixon cut the dollar’s link to gold in the 1970s, reshaping global finance. Now, new experiments with gold, Bitcoin, and stablecoins may again redefine the system. But while Washington debates solutions, the takeaway for everyday people is clear: the rules of the game are shifting, and inflation and instability hit workers hardest while rewarding investors.
That’s why diversification is so important. Don’t bet everything on gold or Bitcoin. They have potential, but they’re volatile. Balance them with real estate and stocks tangible, income-generating assets that can weather economic storms. Because no matter what Congress or the Fed decides, your best defense is financial literacy and a diversified portfolio.
The bottom line: America’s debt problem is real, and the government is experimenting with gold, Bitcoin, and stablecoins to buy time. But these moves carry risks. As an investor, you can’t control government policy, but you can control your money. Get diversified, get educated, and make sure you’re building wealth in a system that’s changing faster than most people realize.
Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence
