According to Deep Tide TechFlow news on December 21, CryptoQuant CEO Ki Young Ju stated that using a strategic bitcoin reserve to offset U.S. debt is a viable method. Over the past 15 years, $790 billion in actual capital inflows have driven bitcoin's market capitalization to $2 trillion. Just this year alone, $352 billion in inflows have increased its market cap by $1 trillion.
However, using a liquid asset like bitcoin (rather than gold or dollars) to offset dollar-denominated debt may make gaining consensus among creditors challenging. For bitcoin to gain broader market acceptance, it must achieve global and national authority comparable to that of gold. Establishing a Strategic Bitcoin Reserve (SBR) can serve as a symbolic first step.
Due to 70% of U.S. debt being held domestically, it is feasible for the U.S. government to offset 36% of that debt by purchasing 1 million bitcoins by 2050 if bitcoin is designated as a strategic asset. Although the remaining 30% of the debt held by foreign entities may resist this approach, the plan does not rely on repaying all the debt with bitcoin, making the strategy practical.
Previously, Senator Cynthia Lummis recently stated that the purpose of a strategic bitcoin reserve is to 'clearly and strategically repay the government debt hanging over every American.'
