The concept of a strategic Bitcoin reserve to help pay off the US national debt is gaining traction, with VanEck’s head of digital assets research, Matthew Sigel, outlining a potential plan for the country to accumulate one million Bitcoin by 2050.
Sigel’s proposal envisions the US Treasury acquiring one million Bitcoin over five years, starting at a price of $200,000 per coin. With a projected 25% compound annual growth rate for Bitcoin and a 5% growth rate for the national debt, the strategic Bitcoin reserve could hold assets equivalent to 36% of the debt by 2050. This would result in a Bitcoin price of $42 million per coin, representing 18% of global financial assets.
Senator Cynthia Lummis of Wyoming has also expressed support for establishing a US strategic Bitcoin reserve, emphasizing the goal of paying down government debt and providing future generations with a stronger financial foundation. Lummis’ proposed bill suggests holding onto the Bitcoin for at least twenty years and establishing proof of reserves to ensure transparency.
As Bitcoin continues to rise in value, currently sitting at $94,839, the idea of leveraging the cryptocurrency to address the national debt is gaining momentum. By strategically accumulating Bitcoin over time, the US could potentially alleviate a significant portion of its debt burden and create a more secure financial future for generations to come.
For the latest updates on this topic and more, subscribe to receive email alerts directly to your inbox. Stay informed about price action and follow us on X, Facebook, and Telegram. Join The Daily Hodl community to stay up to date with the latest developments in the world of digital assets.
Image Source: Matthew Sigel/X
Don’t miss out on the opportunity to explore the potential benefits of a strategic Bitcoin reserve for the US economy. Stay informed and stay ahead of the curve with The Daily Hodl.