VanEck's research highlights how establishing Bitcoin reserves could partially address the US national debt issue.
Bitcoin as a Long-Term Strategic Reserve
VanEck's latest research suggests a scenario where the US Treasury gradually acquires up to 1 million Bitcoins over a five-year period, making it a secure long-term national asset.
Analysis and Projections by VanEck
According to VanEck's model, at an average price of $100,000 per Bitcoin in 2025, the value could see a 25% annual increase. By 2049, Bitcoin's price could reach $21 million, covering up to $21 trillion of national debt, which is 18% of the projected debt.
Legislative Support for the Initiative
Senator Cynthia Lummis, Senate Banking Subcommittee Chair for Digital Assets, supported the research, calling it promising. However, VanEck emphasizes this scenario doesn't guarantee future performance and shouldn't be seen as investment advice.
The idea of a Bitcoin reserve is gaining attention, though Bitcoin's volatility remains a significant risk. VanEck's analysts recommend further exploration of the strategy, factoring in debt growth and Bitcoin's acquisition price.
