According to a recent report from asset management firm VanEck, the United States could significantly reduce its national debt by establishing a strategic Bitcoin reserve.
The company estimates that such a reserve could reduce national debt by up to 35% by 2049, consistent with forecasts from similar studies that expect significant financial benefits.
VanEck’s bold projections
VanEck’s analysis hinges on Bitcoin’s potential 25% compound annual growth rate (CAGR), which would push the price to $42.3 million per coin by 2049. This scenario assumes the US accumulates 1 million Bitcoin, a proposal advocated by Senator Cynthia Lummis in her Bitcoin Reserve Act. VanEck suggests this strategy could offset about $42 trillion of the projected $119.3 trillion national debt in 2049.
Predicted development of US national debt with growth in Bitcoin reserves (2025-2049). Source: VanEck
“Incorporating Bitcoin into national reserves would not only serve as a financial hedge, but could also provide a unique opportunity to reduce national debt without additional tax burdens,” said Matthew Sigel, head of digital asset research at VanEck.
National and state interests
The idea of including Bitcoin in national reserves has gained traction amid increasing institutional adoption. President-elect Donald Trump has expressed openness to creating a strategic Bitcoin reserve, a move that reflects his administration’s overall crypto-friendly stance. Trump recently commented: “We’re going to do something big with crypto…we want to lead, not follow.”
There are already initiatives at the state level…