Asset management firm VanEck recently projected that the United States (US) could significantly reduce its national debt by up to 36% by 2050, if the country adopts a Bitcoin Strategic Reserve.
This initiative is aligned with Senator Cynthia Lummis' Bitcoin Act. She advocates that the USA accumulate one (01) million bitcoins in the next five years. The legislator argues that the reserve could put future generations in a more stable financial position and, above all, free from debts that they did not incur or from which they did not benefit.
How Bitcoin Reserves Could Transform US Debt Management
VanEck’s analysis supports this strategy, predicting that such an investment could effectively reduce national liabilities by about $42 trillion by 2049. This projection assumes a debt growth rate of 5% and an annual bitcoin appreciation rate of 25%.
In this scenario, Bitcoin's value would skyrocket to over $42 million, making it a substantial player in the global financial arena by 2049.
Assuming that today's $900 trillion in total global financial assets compound at 7.0% from 2025 to 2049, Bitcoin would represent 18% of global financial assets in that scenario, the firm added.
Value of US Bitcoin Reserves/Value of National Debt in 2049. Source: VanEck
Mathew Sigel, head of research at VanEck, emphasized Bitcoin’s potential to reshape the global financial landscape. He suggested that the currency could become the primary settlement asset in global trade — presenting an alternative to the U.S. dollar — especially for countries seeking to avoid U.S. sanctions.
It is very possible that bitcoin will be widely used as a settlement currency for global trade by countries wanting to avoid the parabolic rise in USD sanctions that have been imposed, Sigel wrote.
To kickstart this ambitious project, VanEck recommends several preliminary steps. Including stopping the sale of Bitcoin from U.S. asset forfeiture reserves.
Furthermore, it suggests that adjustments could be made under the Donald Trump administration, such as revaluing gold certificates at their current market prices and using the Exchange Stabilization Fund to make initial Bitcoin purchases.
Indeed, these steps could help establish the reserve quickly without waiting for extensive legislative approval.
However, the proposal has met with some skepticism. Venture capitalist Nic Carter has questioned whether a Bitcoin reserve would actually strengthen the US dollar. Meanwhile, Peter Schiff has proposed an alternative by creating a new digital currency called USAcoin.
The U.S. could save a lot of money by creating USAcoin. Like Bitcoin, the supply could be capped at 21 million, but an updated blockchain could make USAcoin truly viable for use in payments, Schiff suggested.
The article VanEck: Bitcoin reserves could reduce US debt by 36% by 2050 appeared first on BeInCrypto Brasil.
