PANews reported on December 21 that Ki Young Ju, founder of CryptoQuant, tweeted 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, $352 billion in inflows has increased its market value by $1 trillion.
However, using extractable assets like Bitcoin (instead of gold or dollars) to offset dollar-denominated debt may make achieving creditor consensus challenging. To gain broader market recognition, Bitcoin must achieve global and national authority comparable to gold. Establishing a Strategic Bitcoin Reserve (SBR) could serve as a symbolic first step.
Since 70% of U.S. debt is held domestically, it is feasible for the U.S. government to designate Bitcoin as a strategic asset and offset 36% of its debt by purchasing 1 million Bitcoins by 2050. While the remaining 30% of debt held by foreign entities may resist this approach, the plan does not rely on repaying all debt with Bitcoin, making this strategy practical.
