The head of digital asset research at exchange traded fund (ETF) provider VanEck says a strategic Bitcoin (BTC) reserve could help the US pay off its rapidly rising national debt in about 25 years.
In a new thread on the social media platform X, VanEck manager Matthew Sigel shows how a strategic Bitcoin reserve could improve the financial situation of the United States by 2050.
In July, Republican Senator Cynthia Lummis of Wyoming said she would announce a bill to create a BTC reserve that would require the US government to accumulate one million Bitcoin in five years.
According to Sigel’s data, the one million Bitcoin hoard would be worth $42.4 trillion in 2049, while the U.S. national debt would be $119.3 trillion.
“Suppose the U.S. Treasury begins purchasing one million Bitcoin over five years at a starting price of $200,000.
Assume that US debt grows by 5% (versus the 8% average annual growth rate over the last 10 years) and the BTC price increases by 25%.
In such a scenario, the US strategic BTC reserve would hold assets equivalent to 36% of debt by 2050.
In this scenario, BTC would be $42 million per coin (the same as Michael Saylor). Target, random) and the…
