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US Bitcoin reserve could slash national debt 35% by 2049
The United States could reduce its national debt by 35% in the next 24 years if it creates a reserve of 1 million Bitcoin, in line with a bill proposed by Senator Cynthia Lummis, asset management firm VanEck said.
VanEck’s estimate assumes Bitcoin $Bitcoin (BTC.CC)$ will increase at a compounded annual growth rate (CAGR) of 25% to $42.3 million by 2049, while US national debt climbsat a 5% CAGR from $37 trillion at the start of 2025 to $119.3 trillion over the same time.
“The reserve could represent an estimated 35% of the national debt by 2049, offsetting ~$42 trillion of liabilities,” VanEck’s head of digital asset research, Matthew Sigel and investment analyst Nathan Frankovitz said in a Dec. 20 report.
The duo’s “optimistic” scenario assumed Bitcoin’s 25% CAGR would start from a $200,000 price point in 2025. Bitcoin is currently trading at $95,360 and would need to more than double to reach VanEck’s noted starting point.
Bitcoin’s price rising to $42.3 million would mean it represents around 18% of the world’s financial assets — up massively from around the 0.22% it represents in today’s $900 trillion market.
President-elect Donald Trump’s incoming administration has floated the idea of a Bitcoin reserve, which has fueled a Bitcoin price rally to over six figures, but the Lummis bill still hasn’t been reviewed by the Senate or House.
Strike founder and CEO Jack Mallers claimed earlier this month that Trump may issue an executive order on his first day in office to designate Bitcoin as a reserve asset.
Under the Lummis bill, the US could repurpose the 198,100 Bitcoin it holds from asset seizures while the remaining 801,900 Bitcoin could be financed through Emergency Support Functions, selling a portion of its $455 billion gold reserves for Bitcoin, or a combination of both — all without money printing and taxpayer funds, VanEck noted.
Bitcoin’s adoption at the US state, institutional and corporate level would also bolster the Bitcoin and Ether $Ethereum (ETH.CC)$ exchange-traded fund issuer’s CAGR estimates, Sigel and Frankovitz said.
Nation-state members of the BRICS (Brazil, Russia, India, China, and South Africa) alliance could also impact Bitcoin’s price and make it increasingly used as a currency, Sigel explained in a Dec. 21 X post.
“It’s very possible Bitcoin will be widely used as a settlement currency for global trade by countries who wanted to avoid the parabolic increase in USD sanctions that have been imposed,” he said.
If the price of Bitcoin rises to $42.3 million per coin by 2049, the U.S. Bitcoin Reserve could drastically reduce the national debt, will your debt be reduced too? Try it for free! https://invest.sg.moomoo.com/cryptotrade
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EZ_money : gold standard can too, just put the dollar back onto gold and re-evaluate gold...happened twice in the past already no need for junk digital assets for that
EZ_money : unless you prefer to use fake gold while the rest of the world is using real gold... BRICs nations have 3/4 of the world's population....guess who has the larger economy between the West and East....not us.
EZ_money :
韭菜饺子韭黄炒蛋 EZ_money : Yes, agree, but the world don't have so much gold...
EZ_money 韭菜饺子韭黄炒蛋 : they have plenty...they can change the value of it any time they want... the east knows the west has been keeping gold prices down so they are taking huge advantage of it and buying taking over the gold market. gold now sells for more in China than it does in United States per ounce. this tactic pulls more gold into the Eastern economies. you can easily research the history how they took the dollar off and back onto gold standard, but not before spiking the prices up before. that will easily handle debt and cover all printed money. it will also benefit consumers greatly it would add 30-40K spending power per year on average family if they did
nevermind da bollock EZ_money : Did you buy it STM for $40?
EZ_money nevermind da bollock : no never entered that one