The head of digital asset research at VanEck indicated that a strategic Bitcoin reserve could help the U.S. pay off its rapidly increasing national debt within approximately 25 years.
Benefits of Bitcoin Reserves
Matthew Sigel, a VanEck executive, demonstrated via social media how a strategic Bitcoin reserve might improve the U.S. financial situation by 2050.
According to Sigel’s data, accumulating one million Bitcoins over five years would yield a value of $42.4 trillion by 2049, while the national debt is projected to reach $119.3 trillion.
Senator Lummis’s Proposal
In July, Republican Senator Cynthia Lummis of Wyoming announced her intention to propose legislation that would enable the U.S. government to accumulate one million Bitcoins within five years.
“The purpose of a strategic Bitcoin reserve is to clearly and strategically pay off the government debt that burdens the American people.” – Cynthia Lummis
Sigel’s calculations suggest that if the U.S. Treasury began buying Bitcoin over five years and the BTC price demonstrated even a 25% compound growth, the strategic Bitcoin reserve could hold assets equivalent to 36% of the debt by 2050.
These predictions support Senator Lummis’s call for establishing a strategic Bitcoin reserve for the U.S.
At the time of writing, Bitcoin’s price stands at $93,839. This strategic reserve could assist future generations in alleviating the burden of debt. However, significant discussions remain regarding how such a reserve would be managed and its potential impact on the market. Powell has already expressed opposition, and some Republicans are also hesitant.
Creating a Bitcoin reserve could initiate a new era in the U.S. financial strategies.