VanEck’s head of digital asset research, strategic Bitcoin $95,971.3 He stated that the reserve could help the United States pay off its rapidly increasing national debt in about 25 years.
Benefit of Bitcoin Reserve
In his statement on social media platform X, VanEck manager Matthew Sigel showed how the strategic Bitcoin reserve could improve the financial situation of the USA by 2050.
According to Sigel’s data, one million Bitcoin accumulation in five years will be worth 42.4 trillion dollars in 2049, while the national debt of the USA will reach 119.3 trillion dollars.
Senator Lummis’ Request
In July, Republican Senator Cynthia Lummis of Wyoming announced that she would introduce a bill that would allow the US government to accumulate one million Bitcoins within five years.
“The purpose of the Strategic Bitcoin Reserve is to pay off the government debt that is clearly and strategically on the backs of the American people.” –Cynthia Lummis
According to Sigel’s calculations, if the US Treasury Department starts buying Bitcoin over five years and the BTC price shows compound growth of 25%, the strategic Bitcoin reserve would hold assets equivalent to 36% of the debt by 2050.
Sigel’s predictions support Senator Lummis’ call to create a strategic Bitcoin reserve for the United States.
At the time of writing, the price of Bitcoin is at $93,839. This strategic reserve can help future generations escape the burden of debt. How such a reserve will be managed in practice and its effects on the market are among the important debates. While Powell is already against it, some Republicans also have hesitations.
The creation of a Bitcoin reserve could usher in a new era in the financial strategies of the United States.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
