At the Bitcoin Policy Institute’s event on March 11, Newmarket Capital CEO Andrew Hohns introduced the idea of 'Bit Bonds'—a novel type of U.S. Treasury bond incorporating Bitcoin into government financing.
The Idea of Bit Bonds
Andrew Hohns suggested the issuance of $2 trillion in bonds, with 90% allocated for government purchases and 10% for Bitcoin acquisition, offering tax-free benefits to American families.
Buying and Storing Bitcoin
At a Bitcoin price of $90,000, the U.S. could purchase about 2.22 million Bitcoins for $200 billion. The final amount depends on price fluctuations. The initiative aims to enable the U.S. to save $554 billion in 10-year interest by offering a lower 1% annual rate compared to the standard 4.5% bonds.
Investor Benefits
'Bit Bonds' could become an appealing investment for foreigners due to their eligibility as collateral. Investors may receive a 4.5% return, and additional gains from 50% of the Bitcoin purchase upside, potentially yielding total returns of 7% to 17% annually tax-free.
Andrew Hohns believes 'Bit Bonds' could act as a powerful tool against inflation while reducing U.S. national debt by increasing the strategic Bitcoin reserve.
