According to Deep Tide TechFlow, on December 21, CryptoQuant CEO Ki Young Ju stated that using a Bitcoin strategic reserve to offset U.S. debt is a feasible method. Over the past 15 years, $79 billion in actual capital inflow has driven Bitcoin's market cap to $2 trillion. Just this year alone, $352 billion in inflows has increased its market cap by $1 trillion.
However, using a liquid asset like Bitcoin (rather than gold or the dollar) to offset dollar-denominated debt may make it challenging to achieve creditor consensus. In order for Bitcoin to gain broader market acceptance, it must achieve a level of global, national authority comparable to that of gold. Establishing a Strategic Bitcoin Reserve (SBR) could serve as a symbolic first step.
Due to 70% of the U.S. debt being held domestically, it is feasible for the U.S. government to offset 36% of this debt by designating Bitcoin as a strategic asset and purchasing 1 million Bitcoins by 2050. Although the remaining 30% of the debt held by foreign entities may resist this approach, the plan does not rely on repaying all debts with Bitcoin, making this strategy realistically viable.
Previously, Senator Cynthia Lummis recently stated that the purpose of a strategic Bitcoin reserve is to 'clearly and strategically pay down the government debt hanging over every American.'
