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The Daily Hodl 2024-12-25 15:30:14

CryptoQuant CEO Says Using Strategic Bitcoin Reserve To Offset US Debt Is Feasible, Calls the Approach Practical

The chief executive of the digital asset analytics firm CryptoQuant thinks a national strategic Bitcoin ( BTC ) reserve could offset US debt. Ki Young Ju tells his 389,600 followers on the social media platform X that $790 billion in realized capital inflows have ballooned Bitcoin’s market cap to $2 trillion over the past 15 years. “This year alone, $352 billion in inflows have added $1 trillion to its market cap. However, using a pumpable asset like Bitcoin to offset dollar-denominated debt—rather than gold or dollars—could make gaining creditors’ consensus challenging. For Bitcoin to achieve broader market acceptance, Bitcoin must attain global, nationwide authority on par with gold. Establishing a Strategic Bitcoin Reserve (SBR) could serve as a symbolic first step. 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.” The CryptoQuant CEO adds that the 30% of debt held by foreign entities might resist that approach, but he argues that the strategy remains practical nonetheless. “If a consensus is reached on Bitcoin’s status, achieving this is entirely possible. The only risk would be old whales dumping BTC to attack the US. However, if governments continue accumulating Bitcoin until 2050 and its price keeps rising, I doubt they would actually dump it.” Source: Ki Young Ju/X Matthew Sigel, the head of digital assets research at exchange-traded fund (ETF) provider VanEck, initially outlined how a strategic Bitcoin reserve could offset US debt. “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.” 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 CryptoQuant CEO Says Using Strategic Bitcoin Reserve To Offset US Debt Is Feasible, Calls the Approach Practical appeared first on The Daily Hodl .

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