VanEck suggests that a U.S. Bitcoin reserve could reduce national debt by 35% by 2049, assuming Bitcoin reaches $42.3 million per coin. Senator Lummis’ bill proposes funding the reserve with seized Bitcoin and gold sales, avoiding taxpayer impact. If successful, this strategy could lower liabilities from $119.3 trillion to $77.3 trillion, while Bitcoin's market share could grow significantly.
Investment manager VanEck forecasts that a US Bitcoin Reserve could offset up to 35% of the national debt by 2050, supporting Senator Cynthia Lummis’s BITCOIN Act, which aims to acquire one million BTC by 2029. With an estimated reserve value of $42 trillion by 2049, assuming a conservative 25% annual growth rate, the plan suggests a gradual accumulation process costing around $320 billion. Advocates argue that Bitcoin could enhance fiscal stability and support US energy goals, despite current prohibitions on government purchases.
A strategic Bitcoin reserve could enable the US to pay off over a third of its national debt by 2050, according to VanEck's Matthew Sigel. He suggests that if the US Treasury acquires one million Bitcoin, valued at $42.4 trillion by 2049, it could significantly improve the nation's financial standing. Senator Cynthia Lummis supports this initiative, emphasizing the need to alleviate the debt burden on future generations.
VanEck proposes that the U.S. could reduce its national debt by $42 trillion by adopting Bitcoin as a strategic reserve asset, potentially offsetting 35% of liabilities by 2049. The plan suggests accumulating one million Bitcoins over five years, leveraging existing government holdings and reallocating gold reserves, without requiring taxpayer funding. This initiative aligns with a bill from Senator Cynthia Lummis and aims to position Bitcoin as a dominant global asset, potentially representing 18% of the world's financial assets by mid-century.
The cryptocurrency market is experiencing a significant downturn, with Bitcoin dropping below $94,000 and major altcoins like Ethereum and Dogecoin also facing steep losses. This sell-off follows the Federal Reserve's cautious monetary policy announcement, which has spooked investors and tightened global liquidity conditions. The total market capitalization has fallen to $3.3 trillion, marking the lowest level in nearly a month, as market sentiment shifts towards neutrality.
Bitcoin experienced its first significant weekly decline since Donald Trump's election, dropping 10% to close at $94,645. This decline follows the Federal Reserve's reduced projections for interest rate cuts, impacting risk-on assets like Bitcoin. Despite the pullback, firms like Bitwise and VanEck predict Bitcoin could reach $180,000 to $200,000 by 2025, driven by increased institutional adoption and a potential U.S. Bitcoin reserve.
The U.S. could cut its national debt by 35% by 2049 by establishing a reserve of 1 million Bitcoin, according to VanEck. This scenario assumes Bitcoin will grow at a 25% annual rate, reaching $42.3 million, while national debt rises to $119.3 trillion. The proposal, linked to Senator Lummis, suggests utilizing seized Bitcoin and selling part of gold reserves to finance the reserve without taxpayer funds.
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