VanEck predicts that the United States could lower its national debt by $21 trillion over the next 24 years by establishing a reserve of one million bitcoins.
VanEck’s Estimate
VanEck believes that a US Bitcoin reserve could reduce national debt if the cryptocurrency's price increases to $21 million by 2049. According to the company's analysis, accumulating 1 million BTC by 2029 could offset 18% of the total US debt at that time. Matthew Sigel, the company's head of digital asset research, stated that with a 25% annual growth rate, Bitcoin's price could reach $21 million over 24 years.
Legislator Support
This prediction is supported by Senator Cynthia Lummis, who noted VanEck’s proposal as a good idea. The Republican senator has been a vocal advocate for creating a Bitcoin reserve as a strategy to address national debt and strengthen the dollar's global status. Lummis argues that the asset’s rising value could help reduce debt. However, the initiative requires legislative approval.
Popularity Among Nations
The concept of a BTC reserve is gaining international attention and is supported by several countries. In Venezuela, opposition leader María Corina Machado advocates incorporating the cryptocurrency into the national reserve. Switzerland is evaluating the use of Bitcoin as a reserve alongside gold, and in Hong Kong, legislator Wu Jiezhuang proposed integrating Bitcoin into financial reserves to enhance economic resilience. However, some, like former BitMEX CEO Arthur Hayes, dismiss it as an impractical strategy.
VanEck's projection highlights the potential benefits of national Bitcoin reserves, but further discussion and legislative approval are necessary for its realization.
