Strategic Bitcoin Reserve Expected to Cut 35% of US National Debt by 2049
Key Points:
- VanEck suggests the U.S. could reduce its national debt by 35% by 2050 through a Strategic Bitcoin Reserve.
- The firm predicts Bitcoin’s value could reach $42.3 million by 2049 with a 25% CAGR.
Asset management company VanEck has put forward a plan that could see the United States shave 35% off its national debt by 2050 thanks to a Strategic Bitcoin Reserve.
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VanEck Predicts Strategic Bitcoin Reserve Would Cut US Debt by 35%
The initiative is in line with legislation by Senator Cynthia Lummis, which urges the government to maintain 1 million Bitcoins as an economic security buffer.
The projection by VanEck assumes Bitcoin will reach a CAGR of 25% and may be worth $42.3 million per Bitcoin in 2049. At the same time, the US national debt will grow at a CAGR of 5%, growing from $37 trillion in early 2025 to $119.3 trillion by 2049.
According to VanEck, Strategic Bitcoin Reserve could help in greatly reducing the cost of capital for the United States. The firm further goes on to estimate that Bitcoin will form 18% of total global financial assets by 2049, assuming all global financial assets grow at a CAGR of 7% from the current $900 trillion.
Policy Shifts Recommended to Support Bitcoin Adoption
According to Mathew Sigel, head of research at VanEck, Bitcoin has the potential to change the course of global finance in favour of a settlement currency for global trade.
To get things moving, VanEck calls for a discontinuation of the selling of seized US Bitcoin assets, then suggests some policy adjustments that the new Trump administration can adopt-including reissuing gold certificates at current market prices and purchasing Bitcoins through the Exchange Stabilization Fund.
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