In a proposal to tackle the U.S. debt crisis, Ki Young Ju, the founder of CryptoQuant, suggests that the United States could strategically accumulate Bitcoin (BTC) over the next few decades.
By acquiring approximately 1 million BTC, the U.S. could potentially offset 36% of its domestically held debt, which could translate to clearing up to 70% of the total national debt. Ju envisions Bitcoin gaining official status as a reserve asset, similar to gold, and leveraging its impressive growth trajectory to address the debt crisis.
However, there are challenges to implementing this proposal. Bitcoin would need to gain widespread market acceptance and trust, overcome its reputation for volatility and speculative trading, and navigate the complexities of the cryptocurrency market. Additionally, the U.S. government would need to establish a clear framework governing the use of Bitcoin as a reserve asset and ensure that its purchases do not unduly influence prices or create market instability.
If the U.S. were to establish a Strategic Bitcoin Reserve, it could signal a significant shift in the perception of cryptocurrencies within the global financial system and pave the way for Bitcoin to play a more active role in global finance. However, the integration of cryptocurrencies into traditional finance remains a topic of significant interest and scrutiny among financial experts and policymakers.