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The Daily Hodl 2024-12-23 12:45:12

Strategic Bitcoin Reserve Can Pay Off Over a Third of US National Debt by 2050, According to VanEck Executive

The head of digital assets research at exchange-traded fund (ETF) provider VanEck says a strategic Bitcoin ( BTC ) reserve can help the US pay off its rapidly accelerating national debt in about 25 years. In a new thread on the social media platform X, VanEck executive Matthew Sigel shows how a strategic Bitcoin reserve could improve the United States’ financial position by 2050. In July, Republican Senator Cynthia Lummis of Wyoming said she would announce a bill to establish a BTC reserve that would drive the US government to accumulate one million Bitcoin in five years. According to Sigel’s data, the one million Bitcoin trove would be valued at $42.4 trillion in 2049 while the US national debt would be worth $119.3 trillion. “Assume the US Treasury starts buying one million Bitcoin over five years at a starting price of $200,000. Assume US debt grows at 5% (vs. last 10 years 8% compound annual growth rate) and BTC price compounds at 25%. In such a scenario, the US Strategic BTC Reserve would hold assets equivalent to 36% of debt by 2050. In that scenario, BTC would be $42 million/coin (same as Michael Saylor’s target, coincidentally) and the market cap would be 18% of global financial assets. But even at a 15% compound annual growth rate, the BTC stash would still be quite valuable” Source: Matthew Sigel/X Sigel’s estimates come as Senator Lummis reiterates the need to create a US strategic Bitcoin reserve. “To be clear, the ‘strategic’ purpose of the Strategic Bitcoin Reserve is to: explicitly, strategically, pay down government debt hanging over the head of every American. Put future Americans on a better footing, unencumbered by debt that they never supported or benefitted from… The bill language is to HODL (hold on for dear life) for twenty years (minimum) and establishes proof of reserves. By that time, the proper next action will be self-evident.” At time of writing, Bitcoin is worth $94,839. Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Follow us on X , Facebook and Telegram Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post Strategic Bitcoin Reserve Can Pay Off Over a Third of US National Debt by 2050, According to VanEck Executive appeared first on The Daily Hodl .

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