The concept of establishing a national strategic Bitcoin reserve to offset US debt is gaining traction among experts in the digital asset industry. Ki Young Ju, the chief executive of CryptoQuant, believes that leveraging Bitcoin as a pumpable asset could potentially help alleviate the country’s debt burden. With $790 billion in realized capital inflows contributing to Bitcoin’s $2 trillion market cap over the past 15 years, the idea of creating a Strategic Bitcoin Reserve (SBR) is being explored as a symbolic first step towards this goal.
Ju suggests that by acquiring 1 million Bitcoin by 2050, the US government could offset 36% of its debt, especially if Bitcoin is designated as a strategic asset. While he acknowledges that foreign creditors might resist this approach, he remains optimistic about the feasibility of such a strategy. The potential risk of old whales dumping Bitcoin to destabilize the US economy is also considered, but Ju believes that continuous accumulation of Bitcoin by governments could mitigate this threat.
Matthew Sigel, the head of digital assets research at VanEck, has also outlined a similar strategy for establishing a strategic Bitcoin reserve. By purchasing one million Bitcoin over five years at a starting price of $200,000, the US could potentially hold assets equivalent to 36% of its debt by 2050. Even with conservative growth estimates, the value of this Bitcoin stash would be substantial, making it a valuable asset for the country’s financial future.
Overall, the idea of using Bitcoin to offset national debt is an intriguing concept that is gaining attention in the digital asset space. While there are potential challenges and risks involved, experts like Ju and Sigel believe that a strategic Bitcoin reserve could be a viable solution for addressing US debt in the long term. As the conversation around Bitcoin and its role in global finance continues to evolve, it will be interesting to see how this idea progresses in the coming years.