According to PANews on December 21, CryptoQuant founder Ki Young Ju tweeted that using a strategic Bitcoin reserve to offset US debt is a feasible approach. Over the past 15 years, $790 billion in actual capital inflow has propelled Bitcoin's market capitalization to $2 trillion. Just this year, an inflow of $352 billion has increased its market cap by $1 trillion.
However, using an extractable asset like Bitcoin (instead of gold or the US dollar) to offset dollar-denominated debt may make it challenging to achieve consensus among creditors. For Bitcoin to gain broader market recognition, it must attain global and national authority comparable to gold. Establishing a Strategic Bitcoin Reserve (SBR) could serve as a symbolic first step.
Since 70% of US debt is held domestically, it is feasible for the US government to designate Bitcoin as a strategic asset and offset 36% of the debt by purchasing 1 million Bitcoins by 2050. While the remaining 30% of the debt held by foreign entities may resist this approach, the plan does not rely on repaying all debt with Bitcoin, making this strategy practical.
