Dennis Porter suggests alternative student loan forgiveness program using Bitcoin
Satoshi Action Fund CEO Dennis Porter has proposed a drastic alternative to President Biden’s student debt forgiveness plan.
Biden should have given each person $10,000 instead of allowing $10,000 in student debt #bitcoinwill be locked into a smart contract for 10 years that will pay off the remaining balance of student debt once released.
Problem solved, no more debt.
— Dennis Porter (@Dennis_Porter_) August 24, 2022
A former political adviser suggested that the U.S. government give all indebted individuals $10,000 in BTC locked in smart contracts. is more than enough to repay the
Aside from the low likelihood of this happening, the cryptocurrency community has also provided feedback on Porter’s ideas.
The Biden Administration Is on Fire
US Student Debt Composed of Federal and Private Loans, Total $1.75 trillionAccording to data, this problem affects 45 million Americans (about 1 in 7).
August 24th, White House announced a student loan relief package that will write off $10,000 of debt for students earning less than $125,000 a year. Low-income households receiving Pelgranz Eligible for $20,000 debt forgiveness.
President Biden He said the bailout would help Americans deal with debt management and see tangible economic benefits from the ripple effect.
“To finally think about buying a house, starting a family, or starting a business. By the way, when this happens, the economy as a whole gets better.”
Overall, the mainstream media turned this story into a positive event. for example, financial times He dismissed inflation risks and called the relief program an “economic nothing burger.” in the meantime, Reuters He suggested that this could lead to price deflation.
However, critics have raised some issues with the program. Texas Republican Party Chairman, Matt Rinaldipointed out that the money must come from somewhere and that it will be billed by “truck drivers and plumbers”.
Harvard University has a $42 billion endowment. Yale University is her $31 billion. But Biden imposes taxes on truck drivers and plumbers to pay off the student loans that built these empires.
— Matt Rinaldi (@MattRinaldiTX) August 23, 2022
Likewise, political commentators Ben Shapiro He spoke out to express a message of personal responsibility and, like Rinaldi, condemned the idea of collectively redressing those who acted economically irresponsibly.
I have controversial thoughts about paying off student loan debt. Do not bring up debt that you are unlikely to be able to pay back. Also, do not ask others to repay your debts.
— Ben Shapiro (@benshapiro) August 23, 2022
Rescue with Bitcoin (?)
Fueling an already politically charged argument, Porter has proposed $10,000 by which qualified persons can be used to purchase bitcoin, which will be turned into a smart contract that will enable access 10 years from now. It will be locked.
After the lock-in period, the funds will be used to pay off your personal student loan balance.
Biden should have given each person $10,000 instead of allowing $10,000 in student debt #bitcoinwill be locked into a smart contract for 10 years that will pay off the remaining balance of student debt once released.
Problem solved, no more debt.
— Dennis Porter (@Dennis_Porter_) August 24, 2022
Commenting on Porter’s ideas, @DavidShares This calls it a “horrifying view” in that the US government needs to control BTC.
Based on the Bitcoin maximalist concept of only supporting self-custodial spot BTC, some questioned the use of smart contracts and whether Bitcoin would even support such a feature.
porter He pointed out that smart contracts are the “heart and soul” of the Lightning Network, including a link to documentation on Hash Time-Locked Contracts.
