Investment firm VanEck has proposed reducing U.S. national debt by creating a Strategic Bitcoin Reserve. This initiative is inspired by the BITCOIN Act proposed by Senator Cynthia Lummis.
The BITCOIN Act: A Strategic Acquisition Plan
The BITCOIN Act, proposed by Senator Cynthia Lummis, suggests the U.S. Treasury buy 1 million bitcoins over five years. This measure aims to counter inflation and global de-dollarization.
VanEck’s Projections: Debt Offset Potential
VanEck's analysis highlights the potential of this initiative. If U.S. national debt grows to $119.3 trillion by 2049 and Bitcoin's price reaches $42.3 million with a 25% CAGR, a 1 million bitcoin reserve could be worth $42.4 trillion, equaling roughly 35% of the national debt.
Examples of Bitcoin Usage at the National Level
El Salvador serves as an example, having adopted Bitcoin as legal tender in 2021 and increasing its reserves since.
Integrating Bitcoin into national reserves could significantly affect both the cryptocurrency market and traditional financial systems, potentially accelerating the price and popularity of Bitcoin.
