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Author: Admin | 2025-04-28
VanEck said a US Bitcoin reserve could slash the national debt if the cryptocurrency increases to $42.3 million a coin by 2049. 9357 Total views 26 Total shares The United States could reduce its national debt by 35% in the next 24 years if it creates a reserve of 1 million Bitcoin, in line with a bill proposed by Senator Cynthia Lummis, asset management firm VanEck said.VanEck’s estimate assumes Bitcoin (BTC) will increase at a compounded annual growth rate (CAGR) of 25% to $42.3 million by 2049, while US national debt climbs at a 5% CAGR from $37 trillion at the start of 2025 to $119.3 trillion over the same time.“The reserve could represent an estimated 35% of the national debt by 2049, offsetting ~$42 trillion of liabilities,” VanEck’s head of digital asset research, Matthew Sigel and investment analyst Nathan Frankovitz said in a Dec. 20 report.Estimated US national debt rise with Bitcoin reserve growth from 2025 to 2049. Source: VanEckThe duo’s “optimistic” scenario assumed Bitcoin’s 25% CAGR would start from a $200,000 price point in 2025. Bitcoin is currently trading at $95,360 and would need to more than double to reach VanEck’s noted starting point.Bitcoin’s price rising to $42.3 million would mean it represents around 18% of the world’s financial assets — up massively from around the 0.22% it represents in today’s $900 trillion market.Estimates US national debt and Bitcoin reserve holdings and Bitcoin value at a presumed CAGR of 25%. Source: VanEckPresident-elect Donald Trump’s incoming administration has floated the idea of a Bitcoin reserve, which has fueled a Bitcoin price rally to over six figures, but the Lummis bill still hasn’t been reviewed by the Senate or House.Related: A Bitcoin Reserve Act may end crypto’s 4-year boom-bust cycleStrike founder and CEO Jack Mallers claimed earlier this month that Trump may issue an executive order on his first day in office to designate Bitcoin as a reserve asset.Under the Lummis bill, the US could repurpose the 198,100 Bitcoin it holds from asset seizures while the remaining 801,900 Bitcoin could be financed through Emergency Support Functions, selling a portion of
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