PANews reported on December 23, according to Beincrypto, that asset management company VanEck recently predicted that by adopting a strategic Bitcoin reserve, the US could significantly reduce its national debt by up to 36% by 2050. This initiative aligns with Senator Cynthia Lummis's Bitcoin bill, which advocates for the accumulation of 1 million Bitcoins over the next five years to solidify the financial foundation for future generations and alleviate their debt burden.
VanEck's analysis further pointed out that if the debt continues to grow at an annual rate of 5%, while Bitcoin maintains an appreciation rate of 25% per year, by 2049, such investments could reduce the US national debt by approximately $42 trillion. At that time, the value of Bitcoin could soar to over $42 million, playing a significant role in the global financial sector. VanEck also added that assuming the current total of global financial assets is $900 trillion, and grows at a compound annual growth rate of 7.0% from 2025 to 2049, Bitcoin could represent 18% of global financial assets.
VanEck's Head of Research Mathew Sigel emphasized the potential of Bitcoin in reshaping the global financial landscape, suggesting it could become the primary settlement currency for global trade, providing an alternative to the US dollar, especially for countries under US sanctions. To this end, VanEck recommends halting the sale of Bitcoin from the US asset forfeiture reserves and suggests that the new Trump administration adjust its policies, such as re-evaluating gold certificates and utilizing foreign exchange stabilization funds to purchase Bitcoin.
