US Could Slash Debt by 36% With Strategic Bitcoin Reserve
Leading asset management firm VanEck recently predicted that the United States could slash its national debt by as much as 36% by 2050 through the adoption of strategic Bitcoin reserves.
This move is consistent with Senator Cynthia Lummis’ Bitcoin bill, which advocates the accumulation of 1 million Bitcoins in the United States within the next five years. The lawmaker argued that such reserves could put future generations on a more stable financial footing, free from debt they have not accumulated or benefited from.
How Bitcoin Reserves Will Transform U.S. Debt Management by 2050
VanEck’s analysis supports this strategy, predicting that such investments could reduce the national debt by about $42 trillion by 2049. The forecast assumes a sustained 5% debt growth rate and a 25% annual Bitcoin appreciation rate.
in this case, Bitcoin value By 2049, its value will soar to more than $42 million, making it a major player on the global financial stage.
“Assuming today’s total global financial assets of $900 trillion grow at a compound rate of 7.0% between 2025 and 2049, in this scenario Bitcoin would account for 18% of global financial assets,” the company said. additional.
Mathew Sigel, head of research at VanEck, emphasizes Bitcoin’s potential role in reshaping the global financial landscape. He said that Bitcoin could become the main settlement currency in global trade – providing an alternative to the US dollar – especially for countries seeking to avoid US sanctions.
“Bitcoin is likely to be widely used as a settlement currency for global trade by countries looking to avoid the parabolic rise of dollar sanctions,” Sigel wrote.
To get this ambitious project off the ground, VanEck recommended several initial steps, including stopping Sell Bitcoin from U.S. Asset Forfeiture Reserve.
Furthermore, they suggest that it can be based on President Donald Trump’s incoming administrationsuch as revaluing gold certificates to current market prices and using the Exchange Stabilization Fund to make initial adjustments Bitcoin purchase.
In fact, these steps can help build reserves quickly without waiting for broad legislative approval.
However, the proposal was met with some skepticism. Venture capitalist Nick Carter questions whether Bitcoin Reserve can really boost the dollar. Meanwhile, Peter Schiff has proposed another option, which is to create a new digital currency called USAcoin.
“The United States could save a lot of money by creating USAcoin. Just like Bitcoin, the supply is capped at 21 million, but the upgraded blockchain allows USAcoin to actually be used for payments,” Schiff suggestion.
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