Asset management company VanEck has predicted that the United States could reduce its national debt by 36% if it adopts Bitcoin as a reserve asset by 2050. This prediction comes amidst discussions led by US President-elect Donald Trump, who has shown interest in using Bitcoin to address the country’s growing debt. Other Bitcoin advocates, such as Senator Cynthia Lummis, believe that incorporating Bitcoin into the national financial system could lead to a debt-free America and provide a better economic future.
VanEck’s analysis is based on Senator Lummis’s proposed Bitcoin Act bill, which suggests purchasing 1 million bitcoins over five years. The asset manager outlines a plan for financing these purchases through various means, including using confiscated bitcoins, reevaluating the country’s gold reserves, and tapping into the Exchange Stabilization Fund. If Bitcoin appreciates annually and the US acquires 200,000 BTC each year, the country’s Bitcoin stash could be worth trillions by 2049, potentially reducing the national debt significantly.
Analysts, including VanEck’s head of asset research Matthew Sigel and SkyBridge managing partner Anthony Scaramucci, support the idea of a strategic Bitcoin reserve in the US. The Bitcoin Policy Institute has even drafted an executive order to establish such a reserve under the Exchange Stabilization Fund, sparking interest from other countries. With global wealth potentially growing and Bitcoin’s market share increasing, the adoption of Bitcoin as a reserve asset could have significant implications for the US and the global financial market.