In February 2025, VanEck released a research tool illustrating the potential impact of the Strategic Bitcoin Reserve on U.S. debt. The study is based on Senator Cynthia Lummis's proposed bill.
Analysis of the Bitcoin Reserve Bill
Senator Cynthia Lummis's bill aims to establish a strategic Bitcoin reserve to reduce U.S. debt. VanEck's research indicates that under specific conditions, this move could offset 18% of the national debt.
Bitcoin Accumulation Potential
VanEck analyzed scenarios where the U.S. government could amass one million bitcoins over 20 years, potentially using these assets to cover the debt. Projections suggest Bitcoin's value could reach $21 trillion by 2049, while the national debt may rise to $116 trillion.
Realism of Debt Repayment with Bitcoin
Although the idea of completely paying off the debt using Bitcoin is intriguing, such forecasts are unlikely. The presence of 21 million bitcoins globally and the impossibility of purchasing the entire amount suggest that full debt repayment remains far-fetched. BlackRock and entrepreneur Michael Saylor are among the largest Bitcoin holders.
In conclusion, while Bitcoin may serve as a potential tool for partial U.S. debt repayment, complete coverage is unlikely. The discussion mostly revolves around mitigating a part of the debt.
