PANews reported on December 23 that asset management firm 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 echoes Senator Cynthia Lummis's Bitcoin bill, which advocates for the US to accumulate 1 million Bitcoins within five years to solidify the financial foundation for future generations and alleviate their debt burden.
VanEck's analysis further points out that if debt continues to grow at an annual rate of 5%, while Bitcoin maintains an appreciation rate of 25% per year, then by 2049, such investments could reduce the national debt of the US by approximately $42 trillion. At that time, the value of Bitcoin would soar to over $42 million, becoming a significant player in the global financial arena. VanEck also added that assuming the current total global financial assets amount to $900 trillion and grow at a compound annual growth rate of 7.0% from 2025 to 2049, Bitcoin would occupy 18% of global financial assets.
VanEck Research Director Mathew Sigel emphasized the potential of Bitcoin in reshaping the global financial landscape, believing it could become a 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 policies, such as re-evaluating gold certificates and using forex stabilization funds to purchase Bitcoin.
