VanEck: Bitcoin Reserve Strategy Could Cut US Debt by 35%, Offsetting About $42 Trillion in Liabilities

Gold Finance reports that asset management company VanEck states that if the United States establishes a reserve of 1 million bitcoins according to the bill proposed by Senator Cynthia Lummis, the national debt of the United States could be reduced by 35% over the next 24 years. VanEck's estimate assumes that bitcoin will grow at a compound annual growth rate (CAGR) of 25% to reach $42.3 million by 2049, while U.S. national debt will rise from $37 trillion at the beginning of 2025 to $119.3 trillion in the same period at a CAGR of 5%. Matthew Sigel, head of digital asset research at VanEck, and investment analyst Nathan Frankovitz stated in a report on December 20: 'By 2049, this reserve could account for 35% of the national debt, offsetting approximately $42 trillion in liabilities.'