• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Strategic Bitcoin Reserve Proposed to Tackle the U.S. National Debt

user avatar

by Giorgi Kostiuk

7 months ago


Financial firm VanEck is exploring the idea of creating a strategic Bitcoin reserve to aid the U.S. in paying off its growing national debt by 2050. This initiative has garnered support from Senator Cynthia Lummis.

Benefits of Bitcoin Reserves

Matthew Sigel, head of digital asset research at VanEck, demonstrated via social media how a strategic Bitcoin reserve could improve the U.S. financial situation by 2050. According to Sigel’s data, accumulating one million Bitcoins over five years would yield a value of $42.4 trillion by 2049, while the national debt is projected to reach $119.3 trillion.

Senator Lummis’s Proposal

In July, Republican Senator Cynthia Lummis of Wyoming announced her intention to propose legislation that would enable the U.S. government to accumulate one million Bitcoins within five years.

The purpose of a strategic Bitcoin reserve is to clearly and strategically pay off the government debt that burdens the American people.Cynthia Lummis

Prospects and Debates

Sigel’s calculations suggest that if the U.S. Treasury began buying Bitcoin over five years and the BTC price demonstrated even a 25% compound growth, the strategic Bitcoin reserve could hold assets equivalent to 36% of the debt by 2050. However, significant discussions remain regarding how such a reserve would be managed and its potential impact on the market. Powell has already expressed opposition, and some Republicans are also hesitant. Creating a Bitcoin reserve could initiate a new era in U.S. financial strategies.

The initiative to create a strategic Bitcoin reserve represents a significant step for the future financial stability of the U.S., yet it requires thorough discussion and economic analysis.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Yapı Kredi Bank Introduces Cryptocurrency Trading Services in Turkey

chest

Yapı Kredi Bank officially announces the launch of a cryptocurrency trading platform, marking a significant development for Turkey's financial landscape.

user avatarGiorgi Kostiuk

Bitcoin Solaris Launches Nova App; BlockDAG’s X1 Miner Surpasses 2 Million Users

chest

Bitcoin Solaris launches Nova app, while BlockDAG's X1 miner has attracted 2 million users.

user avatarGiorgi Kostiuk

Bitcoin Hits Record High: New Peak at $113,700 Driven by Institutional Investments

chest

Bitcoin reached a new high of $113,700 due to institutional inflows and political factors.

user avatarGiorgi Kostiuk

Impact of US Dollar on Global Financial System in Q1 2023

chest

Exploring the factors affecting US Dollar reserves in Q1 2023 and their significance for the global economy.

user avatarGiorgi Kostiuk

Prospects of Solana and Success of Mutuum Finance in DeFi

chest

Solana is gaining momentum, approaching the $180 mark, while Mutuum Finance is successfully conducting its presale.

user avatarGiorgi Kostiuk

ChainCatcher Hosts Discussion on AI and Cryptocurrency Trends

chest

The ChainCatcher event focused on the synergy between AI and cryptocurrency, market impacts, and future trends.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.