According to a report by
According to a report by asset management firm VanEck, the United States could potentially reduce its national debt by 35% within 24 years by establishing a reserve of 1 million Bitcoin. This projection aligns with a proposal introduced by Senator Cynthia Lummis. VanEck’s analysis assumes Bitcoin will grow at a compounded annual growth rate (CAGR) of 25%, reaching $42.3 million per BTC by 2049.
During the same period, the
During the same period, the U.S. national debt is expected to increase at a 5% CAGR, ballooning from $37 trillion in 2025 to $119.3 trillion. By 2049, a Bitcoin reserve could offset approximately $42 trillion in national liabilities, according to the report authored by VanEck’s head of digital asset research, Matthew Sigel, and investment analyst Nathan Frankovitz.
The projection assumes Bitcoin’s price
The projection assumes Bitcoin’s price will rise from $200,000 in 2025, which is a significant increase from its current trading price of $95,360. If Bitcoin achieves the anticipated $42.3 million valuation, it would represent around 18% of the world’s financial assets, up significantly from its current 0.22% share of the $900 trillion market.
The idea of a U.S.
The idea of a U.S. Bitcoin reserve has gained momentum following discussions within Donald Trump’s incoming administration, fueling a Bitcoin price rally past $100,000. Additionally, Strike CEO Jack Mallers speculated that Trump might issue an executive order designating Bitcoin as a reserve asset on his first day in office.
However, Senator Lummis’ bill proposing
However, Senator Lummis’ bill proposing such a reserve has yet to be reviewed by Congress. The Lummis bill suggests repurposing the 198,100 Bitcoin seized from criminal activities and financing the remaining 801,900 BTC through measures like selling a portion of the country’s $455 billion gold reserves or using Emergency Support Functions.
VanEck emphasized that this strategy
VanEck emphasized that this strategy could avoid money printing or taxpayer funding. They also noted that adopting Bitcoin at federal, institutional, and corporate levels could further support its growth. Furthermore, they mentioned that Bitcoin’s broader acceptance in international trade could be driven by countries aiming to circumvent the increasing use of U.S.
dollar sanctions. Recently, Ohio became the latest U.S. state to consider adding Bitcoin to its treasury reserves, following the introduction of a new bill by House Republican leader Derek Merrin. Similar moves were made by Texas and Pennsylvania to establish Bitcoin reserves.
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