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ZyCrypto 2024-12-21 16:25:25

Experts Forecast Timeline for U.S. To Eliminate $36 Trillion Debt Using Bitcoin

As the debate about how to manage the U.S. national debt gains momentum, key players in the crypto sector are increasingly discussing the potential role of Bitcoin in offsetting the nation’s $36 trillion debt. On Saturday, Ki Young Ju, CEO of crypto analytics firm CryptoQuant, weighed in on the idea of a Strategic Bitcoin Reserve (SBR), calling it a “feasible approach.” Ju noted that in 2024 alone, $352 billion in new inflows drove a $1 trillion market cap increase, underscoring Bitcoin’s potential for capital generation. He argued that if the U.S. government designated Bitcoin as a strategic asset as a first step, acquiring 1 million BTC by 2050 could offset 36% of the national debt, especially considering most of it is held domestically. “With 70% of U.S. debt held domestically, offsetting 36% of it by acquiring 1 million Bitcoin by 2050 becomes feasible if the U.S. government designates Bitcoin as a strategic asset,” he said , echoing sentiments by Matthew Sigel, Head of Digital Assets Research at VanEck. Moreover, on Friday, prominent Bitcoin advocate Michael Saylor further advanced the discussion by publishing a Bitcoin and crypto framework to position the United States as a leader in the global digital economy. Among his proposals was the creation of a Strategic Bitcoin Reserve, which he argued could generate $16 to $81 trillion in wealth for the U.S. Treasury, potentially offsetting the national debt completely. The idea has also gained traction among pro-crypto lawmakers, with Senator Cynthia Lummis emerging as a leading advocate. In July, Lummis introduced the Bitcoin Act in Congress to formalize the proposal. On Thursday, Lummis highlighted the importance of using Bitcoin to stabilize the U.S. financial system, asserting that, despite Bitcoin’s volatility, its potential for long-term growth could provide a solution to the country’s mounting debt issues. “Bitcoin’s long-term growth far exceeds the U.S. dollar,” she explained during an interview with Yahoo Finance. She further suggested that the U.S. acquire 200,000 Bitcoin annually over five years, totaling 1 million BTC, and hold it for at least 20 years. According to her, such an investment could generate a $16 trillion fund, substantially boosting the U.S. economy. “This approach offers multiple benefits,” Lummis explained. “By shoring up the U.S. dollar with a hard asset like Bitcoin, we could help stabilize the currency and offset some of our $36 trillion national debt.” Let’s recall that during his 2024 presidential campaign, President Trump endorsed the concept of a U.S. Bitcoin reserve as a bold and unconventional strategy to address the national debt crisis. “ How about we pay off our $35 trillion? Give them a little check in crypto, give them some Bitcoin, and pay off the debt,” he had stated during an interview, lending significant weight to the proposal.

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