MicroStrategy Executive Chairman Michael Saylor proposed a 'Digital Asset Framework', advocating for the establishment of BTC reserves to offset national debt. Regarding this issue, CryptoQuant Founder Ki Young Ju expressed agreement, noting that if the United States plans to purchase 1 million BTC by 2050, it could potentially reduce national debt by 36%, although acceptance by foreign creditors remains a challenge. (Background: Michael Saylor: Bitcoin could reach $13 million by 2045, growing at an average of 29% per year) (Context: Wall Street Journal: The risks of MicroStrategy's leveraged ETF are gradually emerging behind the Bitcoin frenzy) The most devoted believer in Bitcoin, MicroStrategy's Executive Chairman Michael Saylor, today published the 'Digital Asset Framework' on X platform, stating that establishing a strategic digital asset policy can not only solidify the dollar's status and alleviate national debt pressure but also position the United States as a global leader in the 21st-century digital economy—promoting business development, driving economic growth, and creating trillions of dollars in economic value. A strategic digital asset policy can strengthen the US dollar, neutralize the national debt, and position America as the global leader in the 21st-century digital economy—empowering millions of businesses, driving growth, and creating trillions in value. https://t.co/7n7jQqPkf1 — Michael Saylor (@saylor) December 20, 2024 Michael Saylor: Establish Bitcoin reserves to offset national debt Michael Saylor's digital asset framework explores opportunities and America's leadership in digital assets from five core perspectives. In the 'Opportunities' aspect, he mentioned that establishing Bitcoin reserves could create wealth of $16 trillion to $81 trillion for the U.S. Treasury, thereby providing a means to offset national debt. Additionally, he proposed the following three core opportunities: The dollar as the global reserve digital currency: Expanding the digital currency market size from $25 billion to $10 trillion, creating significant demand for U.S. national debt. Expansion of the digital capital market: The global digital capital market is expected to grow from the current $2 trillion to $280 trillion, with American investors reaping major benefits. Leadership in digital assets: Driving the market size of digital assets (not limited to Bitcoin) from $1 trillion to $590 trillion, establishing U.S. dominance in the industry. Other topics in the digital asset framework Besides 'Opportunities', Michael Saylor's framework also covers the following key issues: Asset classification: Define types of digital assets, including 'digital commodities' (such as Bitcoin), 'digital securities', 'digital currencies', 'digital tokens', 'digital NFTs', and 'digital ABTs' linked to physical assets. Legitimacy: Emphasize establishing the rights and responsibilities of issuers, exchanges, and holders, including fair disclosure, asset protection, and compliance obligations, ensuring trust and integrity among market participants. Practicality: Simplify the compliance processes for digital assets, reduce bureaucracy and costs, support market-oriented innovation, and enhance efficiency and innovation through standardized disclosure and industry-led compliance. Vision: Promote a 'Renaissance' of the American capital market, lowering issuance costs, expanding market access, enabling more small and medium enterprises, artists, and brands to raise funds through tokenization, creating trillions of dollars in value. CryptoQuant Founder: Using Bitcoin to offset U.S. debt is feasible but challenging The idea of using Bitcoin reserves to offset a nation's debt has been widely discussed. In this regard, CryptoQuant Founder Ki Young Ju posted on X platform that incorporating Bitcoin into strategic reserves to offset U.S. debt is a feasible approach. He stated: Over the past 15 years, Bitcoin has attracted a cumulative $790 billion in capital inflows, boosting its market cap to over $2 trillion. This year alone, a mere $352 billion in inflows has added $1 trillion to its market cap. However, Ki Young Ju also pointed out that using a volatile asset like Bitcoin to offset dollar-denominated debt may face challenges in achieving consensus among creditors compared to gold or the dollar. For Bitcoin to gain broader acceptance in the market, it must possess global recognition and national-level authority equivalent to that of gold. Establishing 'Strategic Bitcoin Reserves' (SBR) could serve as a symbolic first step. Ki Young Ju added that currently, 70% of U.S. national debt is held domestically, so if the government defines Bitcoin as a strategic asset and plans to purchase 1 million bitcoins by 2050, it could potentially offset up to 36% of the debt. Although the remaining 30% of foreign creditors may not accept this plan, the strategy does not rely on using Bitcoin to settle all debts, making it somewhat feasible. Strategic #Bitcoin Reserves to offset U.S. debt is a feasible approach. Over the past 15 years, $790 billion in realized capital inflows have propelled Bitcoin’s market cap to $2 trillion. This year alone, $352 billion in inflows have added $1 trillion to its market cap.… https://t.co/E2sorulSii pic.twitter.com/Xg1SR9ixqB — Ki Young Ju (@ki_young_ju) December 21, 2024 Related reports Michael Saylor briefs Microsoft board: Replace traditional stock dividend and buyback strategies with Bitcoin (full video attached) Rich Dad claims Bitcoin could reach $13 million! Strongly supports Michael Saylor's prediction: MicroStrategy is right Bitcoin breaks $95,800! MicroStrategy's BTC holdings have a floating profit of over $15 billion, ranking among the top 100 companies in the U.S. 'Michael Saylor proposes a digital asset framework: Use Bitcoin reserves to offset U.S. national debt! Cryp...

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