Robert Hall is a writer and company owner, and this piece is an editorial expressing his own opinion on a topic. “Bitcoin ”
On Wednesday, Vice President Biden presented a plan to reduce the debt of millions of Americans by providing relief from their student loans. Debts of between $10,000 and $20,000, depending on the type of loan, could be forgiven for current and previous students who have taken out student loans.
Approximately 43 million Americans will see some sort of improvement thanks to this new approach. People who are having trouble repaying their college loans probably weren’t going to do so anyhow, so this could work out for the best. Is this the right course of action to take? The answer fluctuates depending on who you ask. A Democrat might argue that Biden’s plan doesn’t do enough to assist the working poor and middle class.
If you ask a Republican, they would probably tell you that this approach isn’t fair to debtors who have made sacrifices to get out of debt. There is merit on both sides, and no one would have welcomed his announcement with open arms. Is there any indication of how the typical Bitcoin maximalist could feel about this plan?
To be clear, I can’t speak for every Bitcoiner; all I can say is that the federal government is effectively insolvent, so anything it does won’t make much of a difference anyhow. They know it, we know it, but the rest of society either doesn’t know it or doesn’t want to accept the reality that we are in, so they keep up the pretense.
At its core, Biden’s plan to alleviate student debt is a nationwide effort to buy votes. Democrats are aware that high inflation and petrol prices will hurt their chances in November. Voters will be swayed to support Democrats in November if they believe the party will forgive debt for millions of Americans. The possibility of a red wave is dwindling.
I was thinking about this situation, and a phrase by Alexander Fraser Tytler Lord Woodhouselee popped into my head. “Democracy cannot exist as a permanent form of government,” he argues. It can last only as long as people don’t figure out how to vote themselves cash from the Treasury. From then on, the majority always backs the candidate who promises the largest handouts from the Public Treasury, which is why every democracy eventually fails due to irresponsible spending and is replaced by an autocracy. It has taken the world’s greatest civilizations an average of 200 years to reach their current level of development.
This comment rings disturbingly true in light of the past two years, when we have seen an increase in censorship, mandatory vaccine policies, and outright propaganda from the old media.
Under these circumstances, I think it will take a lot of hope and prayer for America to remain as it is now.
Will Forgiving Student Loans Benefit Bitcoin in Any Way?
Getting rid of student loans: good for bitcoin? The honest answer is probably not, though it does vary by how old the typical student loan borrower and bitcoin buyer happens to be.
It is estimated by the White House that 21% of the debt reduction will go to those under the age of 25, while 44% will go to those between the ages of 26 and 39.
When compared to the typical “crypto” customer, these statistics show a good fit. According to research conducted by STILT, the majority of bitcoin buyers are members of Generation Z and millennials aged 18–40. 76% of those total are millennials.
For this generation, the average amount of student loan debt was $43,210. If this debt relief proposal is implemented, the demographic conditions are such that the $10,000 that would have been transferred to the federal government to pay back student loans could instead be used to purchase Bitcoin.
Is there a chance that this occurrence will actually happen? Perhaps, but I wouldn’t put money on it; the research was done on all cryptocurrencies, and if you’re still playing around with shitcoins, you’re not ready for bitcoin, full stop. I have no problem if this debt relief strategy allows some Bitcoiners to spend less on interest payments and more on maize. LFG. Those that understand Bitcoin now stand to gain from its early adoption as the system implodes around them.
Bitcoin triumphs ultimately, and the federal government can write off as much debt as it likes but it will not change the outcome. Maintain your modesty, do your best for your loved ones, and rack up the sats.
A contribution from Robert Hall. These authors’ views are their own and do not represent those of BTC Inc. or Bitcoin Magazine.