VanEck, an asset management firm, projects that the US could slash its national debt by up to 36% by adopting a Strategic Bitcoin Reserve by 2050. They align with Senator Cynthia Lummis's Bitcoin Act, which aims for the US to gather 1 million bitcoins in the next five years, promoting future financial stability.
Their analysis anticipates cutting national liabilities by around $42 trillion by 2049, assuming a consistent debt growth rate of 5% and a 25% annual bitcoin appreciation, leading Bitcoin’s value to exceed $42 million.
Mathew Sigel of VanEck highlights Bitcoin's potential to reshape the global financial landscape, suggesting it might even surpass the US dollar in global trade settlements, especially for nations wanting to evade US sanctions.
VanEck recommends steps like halting Bitcoin sales from asset forfeiture reserves and possibly revaluing gold certificates for this ambitious endeavor. However, skepticism arises, with Nic Carter questioning its impact on the US dollar's strength and Peter Schiff proposing a new digital currency, USAcoin.
