It seems like there’s been quite a buzz recently about the idea of the United States establishing a strategic Bitcoin reserve. This topic has sparked interesting discussions within the cryptocurrency community, including a recent post by CryptoQuant CEO and founder Ki Young Ju on the X platform. In his post, Ki Young Ju argues that using Bitcoin to offset the country’s debt is a viable approach and suggests that it could potentially lead to a reduction of domestic debt by 36%.
He bases this calculation on the observation that over the past 15 years, $790 billion in realized capital inflows have contributed to Bitcoin’s market cap reaching $2 trillion. Furthermore, he notes that this year alone, $352 billion in inflows have increased Bitcoin’s market cap to $1 trillion. Ki Young Ju suggests that if the U.S.
government were to acquire 1 million BTC by 2050 and designate Bitcoin as a strategic asset, they could potentially reduce their domestic debt by 36%, which amounts to 70% of the country’s total debt. However, he acknowledges that there may be some challenges associated with creditors’ acceptance of this move.
Despite these challenges, Ki Young Ju argues that establishing a strategic Bitcoin reserve could serve as a “symbolic first step” towards legitimizing Bitcoin globally, similar to how assets like gold have gained international recognition. He also raises the possibility of old whales dumping their BTC to protest against the U.S.
government, but suggests that this scenario may not materialize due to the continued growth of Bitcoin’s value. As for the current state of affairs, the price of BTC stands at around $97,000, representing a 0.4% decrease in the past 24 hours according to data from CoinGecko. Overall, it will be interesting to see how this idea progresses and what impact it might have on the broader adoption of Bitcoin and other cryptocurrencies.
Source
