A new tool developed by asset management firm VanEck suggests that a Bitcoin reserve could potentially offset the U.S. national debt by 2049. The tool was used by The Crypto Basic to explore different scenarios based on debt growth, Bitcoin price, and acquisition strategies. The analysis shows a scenario where the U.S. Treasury's Bitcoin holdings surpass the projected national debt, effectively eliminating it entirely. The BITCOIN Act, proposed by Senator Cynthia Lummis, suggests that the U.S. Treasury should acquire up to 1 million Bitcoin over five years and store it in a Strategic Bitcoin Reserve. The analysis considers different acquisition strategies, including a more aggressive approach with a target of 2.5 million Bitcoin. The assumed average acquisition price per Bitcoin is set at $100,000, and the compound annual growth rate (CAGR) for Bitcoin is set at 30% for the analysis. Under these conditions, the Treasury's Bitcoin holdings would grow significantly, reaching $136 trillion by 2049. Meanwhile, the national debt is projected to triple to $116 trillion by 2049. Therefore, the Bitcoin reserve could potentially cover 117% of the national debt, acting as a hedge against rising debt. However, these projections depend on various factors, including Bitcoin adoption and regulatory policies. The analysis acknowledges the volatility of Bitcoin but highlights its historical trend as a strong store of value over extended periods.



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