the The United States could reduce its national debt by 35% within 24 years by creating a reserve of 1 million Bitcoins.According to a report by asset management company VanEck. This projection is consistent with a proposal made by Senator Cynthia Lummis.
VanEck’s analysis assumes that Bitcoin will grow at a compound annual growth rate (CAGR) of 25%, reaching $42.3 million per Bitcoin by 2049. During the same period, the we National debt It is expected To increase the compound annual growth rate by 5%, rising from $37 trillion in 2025 to $119.3 trillion.
By 2049, Bitcoin reserves could offset nearly $42 trillion in national liabilities, According to To the report Written by Matthew Siegel, Head of Digital Asset Research at VanEck, and Investment Analyst Nathan Frankowitz.
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The VanEck project assumes that the price of Bitcoin will reach $200,000 in 2025
This projection assumes that the price of Bitcoin will rise from $200,000 at 2025-A A sharp increase from the current trading price of $95,360.
If Bitcoin achieves the expected valuation of $42.3 million, it will represent about 18% of the world’s financial assets, a significant increase from its current share of 0.22% of the $900 trillion market.
Idea A we The Bitcoin reserve gained momentum after discussions within the incoming Donald Trump administration, sending the price of Bitcoin soaring past $100,000.
Additionally, Jack Mallers, CEO of Strike, expects Trump to issue an executive order designating Bitcoin as a reserve asset on his first day in office. However, Senator Lummis’s bill proposes such a reserve It has not yet been reviewed by Congress.
Loomis’ bill proposes reusing the 198,100 bitcoins seized from criminal activities and financing the remaining 801,900 bitcoins through measures such as selling a portion of the country’s $455 billion gold reserves or using emergency support functions.
Van Eck stressed that this strategy could avoid money printing or taxpayer financing.
“We have a model that assumes that by 2050 #Bitcoin It becomes a reserve asset held by central banks with a weight of 2%. In this model, we reached a target price of $3 million for Bitcoin.”
-Van Eyckpic.twitter.com/rrHa2wnrDa
– Bold Bitcoin (@BoldBitcoin) November 19, 2024
The adoption of Bitcoin at the federal, institutional and corporate levels could further support its growth. Van Eck noted that the adoption of Bitcoin by the BRICS countries (Brazil, Russia, India, China and South Africa) could also significantly impact their currency. Use k World trade settlement currency.
According to Siegel, countries aiming to circumvent the growing use of… we Dollar sanctions may lead to Bitcoin being more widely accepted in international trade.
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we States are considering adding Bitcoin to reserves
It has become Ohio State Latest we State for consideration Adding Bitcoin to Treasury reserves, after a new bill was introduced by House Republican Leader Derek Mirren.
This initiative reflects recent moves by the states of Texas and Pennsylvania to create Bitcoin reserves.
On December 12, 2024, Texas Representative Giovanni Capriglione Texas Strategic Reserve Act introducedwhich proposes that the state comptroller hold Bitcoin as a reserve asset for at least five years.
Pennsylvania made a similar move in November, with Rep. Mike Cabell proposing a bill to allow its treasury to allocate up to 10% of its balance sheet in bitcoin, citing the asset’s potential to hedge against economic uncertainty.
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