Title: Could the US Offset Part of Its National Debt by Creating a Strategic Bitcoin Reserve? CryptoQuant CEO Weighs In
Cryptocurrency enthusiasts have been buzzing about the possibility of countries adopting Bitcoin as a strategic asset to offset their national debts. Now, Ki Young Ju, the CEO of CryptoQuant, has suggested that the US could feasibly do so by establishing a Strategic Bitcoin Reserve (SBR).
In a recent social media post, Ki shared his analysis, which estimates that $790 billion in capital inflows have driven Bitcoin’s market cap to $2 trillion over the past 15 years. This year alone, another $352 billion in inflows contributed to an additional $1 trillion in market cap growth. However, implementing such a plan comes with its challenges.
Ki pointed out that using a volatile asset like Bitcoin instead of traditional reserves like gold or the US dollar could complicate creditor relations. Additionally, gaining creditors’ consensus could be difficult due to the unpredictable nature of Bitcoin’s price movements. Despite these hurdles, Ki argues that establishing an SBR could serve as a symbolic first step towards broader acceptance of Bitcoin as a legitimate asset class.
He also noted that offsetting 36% of domestically held US debt by acquiring 1 million Bitcoins by 2050 is feasible if the US government classifies Bitcoin as a strategic asset. Matthew Sigel, head of digital asset research at VanEck, has conducted his own analysis on this proposal. His findings suggest that under favorable growth conditions, the reserve could cover a substantial portion of the debt, creating a novel economic buffer against future liabilities.
While still largely speculative, this idea highlights the growing interest in alternative strategies for managing national debts through digital assets as the crypto market continues to mature. However, widespread adoption would require regulatory clarity and international cooperation to ensure Bitcoin’s seamless integration into national reserves.
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