IMF Warns of Surging Global Debt as Bitcoin Gains Attention as Potential Long-Term Hedge

The International Monetary Fund has warned that governments' long-term reliance on borrowing to finance spending could weaken their debt-servicing capacity and disrupt bond markets. With public debt closing in on the equivalent of one year's global economic output, Bitcoin's fixed supply of 21 million coins and independence from government monetary policy have led markets to view it as a potential long-term hedge.

The IMF's latest forecast shows that global public debt as a share of world GDP will continue rising and could reach 100% by 2029, creating what has been called a “100% debt trap.” Related analysis suggests that capital could shift toward Bitcoin if governments use low interest rates, inflation or capital controls to ease their debt burdens. That view is a market thesis, however, not a formal IMF recommendation.