US Bitcoin reserve could slash national debt 35% by 2049: VanEck
VanEck has indicated that establishing a US Bitcoin reserve could significantly reduce national debt by 35% by 2049 if Bitcoin reaches $42.3 million per coin. The firm predicts that creating a reserve of 1 million Bitcoins, as proposed by Senator Cynthia Lummis, would alleviate approximately $42 trillion in liabilities. This estimate is based on a projected compounded annual growth rate (CAGR) of 25% for Bitcoin starting at $200,000 in 2025, while national debt is expected to rise from $37 trillion to $119.3 trillion at a 5% CAGR over the same period. If Bitcoin's price grows as predicted, it could represent a much larger share of global financial assets, increasing from currently about 0.22%. The bill suggests utilizing seized Bitcoin and selling part of gold reserves to finance the reserve without impacting taxpayer funds. Additionally, adopting Bitcoin at state levels and the growing international use of Bitcoin could further support its price and functionality as a currency.
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