US Bitcoin Reserve Could Cut National Debt by 35% by 2049

• VanEck claims that the US Bitcoin reserve could cut the national debt by 35% if Bitcoin grows to $42.3 million by 2049.

• Senator Lummis' bill proposes to fund the reserve with seized Bitcoin, gold sales, and strategic financing without affecting taxpayers.

Asset management company VanEck has proposed that the United States could significantly reduce its national debt by establishing a Bitcoin reserve, according to a bill proposed by Senator Cynthia Lummis. The company's analysis estimates that the value of Bitcoin could reach $42.3 million per coin by 2049, creating an opportunity for the US to offset $42 trillion in debt.

The potential economic impact of Bitcoin

VanEck's estimate assumes that the price of Bitcoin will grow at a compound annual growth rate (CAGR) of 25%, starting from a hypothetical valuation of $200,000 in 2025. With Bitcoin currently trading at around $95,360, it would require This is a two-fold increase in the value of the digital currency in line with the company's projections.

By 2049, the Bitcoin market capitalization could represent 18% of the world's financial assets, compared to the current share of 0.22% of the $900 trillion market. If these projections In fact, a 1-million-bitcoin reserve could reduce the national debt by 35%, bringing down liabilities from a projected $119.3 trillion to $77.3 trillion.

Under the legislation proposed by Senator Lummis, the US government could allocate the existing 198,100 Bitcoinobtained through seizure of assets, towards the reserve. The remaining 801,900 Bitcoin could be financed through a combination of selling gold reserves, currently valued at $455 billion, or benefiting from Emergency Relief Operations. This strategy would avoid reliance on money printing or taxpayer money, according to the VanEck report.

Global influence and market trends

VanEck pointed out its potential impact on the adoption of Bitcoin at the domestic and international levels. Greater adoption by US institutions and corporations could drive the value of digital currency, as could actions by the BRICS countries. The federation's investigation into Bitcoin as a settlement currency for global trade could further influence its price trajectory.

At the same time, speculation about the US government administration's new policy on Bitcoin has also fueled the market. Apparently, during Donald Trump president, Bitcoin was slated to be designated as a proper reserve currency at the executive order level, which is in line with Lummis' plans

VanEck's view is based on an optimistic scenario where Bitcoin achieves sustainable growth amid increasing adoption. Although the targets set are reasonably aggressive, the company admits that there are still significant hurdles to overcome, such as the level of management choice availability and market concentration.

Once these obstacles are largely overcome, the use of Bitcoin as a reserve asset should be an important milestone for the management of the national debt of the United States, and, conversely, it should completely change the economic order of the whole world.

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