Bitcoin Could Reduce US Debt By 35%!

Over $34 trillion. This is the astronomical sum that Americans have let slide onto their shoulders, forming an abyssal national debt. In the face of this chasm, Donald Trump, freshly reelected, proposes a bold strategy: to make Bitcoin a significant ally. A national reserve of 1 million BTC could, according to experts, alleviate the debt by 35% by 2049. However, the plan relies on dizzying assumptions and a bit of political audacity.

The American Economy Taking on Bitcoin

Imagine for a moment: in 2049, the price of bitcoin reaches the staggering value of $42.3 million per unit, marking an annual increase of 25%. Thanks to this ascent, a national reserve of 1 million BTC could cover 35% of the American debt, according to VanEck’s report. This debt, estimated at $37 trillion by 2025, could swell to $119 trillion in the next 25 years.

📊 INSIGHT: US Bitcoin reserve could slash national debt 35% by 2049: VanEck

VanEck’s estimate assumed Bitcoin will increase at a compounded annual growth rate of 25% to $42.3M by 2049, while US national debt climbs at a 5% CAGR from $37T at the start of 2025 to $119.3T over the… pic.twitter.com/c6IToCEOcT

— Cointelegraph (@Cointelegraph) December 23, 2024

To finance this boldness without taxing citizens further, VanEck proposes original solutions:

• Utilize the 198,100 BTC already seized by the government;
• Sell a portion of the $455 billion in gold reserves;
• Activate emergency mechanisms, such as strategic support functions.

“Such an initiative would make bitcoin not only a strategic asset but also a significant economic lever,” explain Matthew Sigel and Nathan Frankovitz, analysts at VanEck.

If the idea seems appealing, it is nonetheless based on a cocktail of speculation and optimism.

The Queen of Cryptos, the Geopolitical Weapon of Tomorrow?

The adoption of Bitcoin as a reserve asset could also alter global balances. Some analysts predict that cryptocurrency could represent up to 18% of global financial assets by 2049, compared to just 0.22% today.

Jack Mallers, CEO of Strike, even believes that Donald Trump could accelerate things by signing a decree on his first day in office, officially establishing bitcoin as a strategic asset. Meanwhile, the bill Lummis, which supports this idea, is still awaiting validation from Congress.

At the same time, BRICS member countries, eager to escape dollar sanctions, could massively adopt bitcoin as a settlement currency for international trade.

“The use of bitcoin as a currency of exchange by nation-states is becoming increasingly likely,” wrote Matthew Sigel. If this materializes, the United States could not only alleviate their debt but also strengthen their position in the race for digital reserves.

At the same time, bitcoin is not just a debt-clearing solution: it represents an economic potential of $81 trillion to save the United States, some experts argue. A risky bet, but perhaps a winning ticket to turn debt into hard cash profits.