{"id":30577,"date":"2024-12-23T11:28:37","date_gmt":"2024-12-23T11:28:37","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=30577"},"modified":"2024-12-23T11:28:37","modified_gmt":"2024-12-23T11:28:37","slug":"vaneck-us-could-slash-national-debt-by-35-with-1-million-bitcoin-reserve","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=30577","title":{"rendered":"VanEck: US Could Slash National Debt By 35% With 1 Million Bitcoin Reserve"},"content":{"rendered":"

The<\/span> US could potentially reduce its national debt by 35% within 24 years by establishing a reserve of 1 million Bitcoin<\/span>, according to a report by asset management firm VanEck<\/span>.<\/span> The projection aligns with a proposal introduced by Senator Cynthia Lummis.<\/span><\/p>\n

VanEck\u2019s analysis assumes Bitcoin will grow at a compounded annual growth rate (CAGR) of 25%, reaching $42.3 million per BTC by 2049. <\/span>During the same period,<\/span> the <\/span>U.S.<\/span> national debt <\/span>is expected<\/span> to increase at a 5% CAGR, ballooning from $37 trillion in 2025 to $119.3 trillion.<\/span><\/p>\n

By 2049, a Bitcoin reserve could offset approximately $42 trillion in national liabilities, <\/span>according<\/span> to the report<\/span><\/a> authored by VanEck\u2019s head of digital asset research, Matthew Sigel, and investment analyst Nathan Frankovitz.<\/span><\/p>\n

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VanEck Project Assumes Bitcoin Price to Hit $200,000 in 2025<\/span><\/h2>\n

The projection assumes Bitcoin\u2019s price will rise <\/span>from<\/span> $200,000 in 202<\/span>5\u2014a<\/span> steep increase from its current trading price of $95,360.<\/span><\/p>\n

If Bitcoin achieves the anticipated $42.3 million valuation, it would represent around 18% of the world\u2019s financial assets, up significantly from its current 0.22% share of the $900 trillion market.<\/span><\/p>\n

The idea of a <\/span>U.S.<\/span> Bitcoin reserve has gained momentum following discussions within Donald Trump\u2019s incoming administration, fueling a Bitcoin price rally past $100,000. <\/span><\/p>\n

Additionally, Strike CEO Jack Mallers speculated that Trump might issue an executive order designating Bitcoin as a reserve asset on his first day in office. <\/span>However, Senator Lummis\u2019 bill proposing such a reserve <\/span>has yet to be reviewed by Congress<\/span>.<\/span><\/p>\n

The Lummis bill suggests repurposing the 198,100 Bitcoin seized from criminal activities and financing the remaining 801,900 BTC through measures like selling a portion of the country\u2019s $455 billion gold reserves or using Emergency Support Functions. <\/span><\/p>\n

VanEck emphasized that this strategy could avoid money printing or taxpayer funding.<\/span><\/p>\n

\u201cWe have a model that assumes that by 2050 #Bitcoin<\/a> becomes a reserve asset that is held by central banks at a 2% weight. In that model we arrive at a $3M price target for Bitcoin.\u201d
\u2013 VanEck pic.twitter.com\/rrHa2wnrDa<\/a><\/p>\n

\u2014 Bold Bitcoin (@BoldBitcoin) November 19, 2024<\/a><\/p>\n\n

Adopting Bitcoin at federal, institutional, and corporate levels could further support its growth. <\/span>VanEck noted that Bitcoin adoption by BRICS nations (Brazil, Russia, India, China, and South Africa) could also significantly impact its <\/span>use as a<\/span> global trade settlement currency.<\/span><\/p>\n

According to Sigel, countries aiming to circumvent the increasing use of <\/span>U.S.<\/span> dollar sanctions might drive Bitcoin\u2019s broader acceptance in international trade.<\/span><\/p>\n

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US<\/span> States Consider Adding Bitcoin To Reserves<\/span><\/h2>\n

Ohio has become <\/span>the latest <\/span>US<\/span> state to consider<\/span><\/a> adding Bitcoin to its treasury reserves, following the introduction of a new bill by House Republican leader Derek Merrin.<\/span><\/p>\n

The initiative mirrors recent moves by Texas and Pennsylvania to establish Bitcoin reserves.<\/span><\/p>\n

On 12 December 2024, Texas Representative Giovanni Capriglione <\/span>introduced the Texas Strategic Bitcoin Reserve Act<\/span><\/a>, which proposes that the state comptroller hold Bitcoin as a reserve asset for at least five years.<\/span><\/p>\n

Pennsylvania took a similar step in November, with Representative Mike Cabell proposing a bill to allow its treasury to allocate up to 10% of its balance sheet in Bitcoin, citing the asset\u2019s potential to hedge against economic uncertainty.<\/span><\/p>\n

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The post VanEck: US Could Slash National Debt By 35% With 1 Million Bitcoin Reserve<\/a> appeared first on 99Bitcoins<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

The US could potentially reduce its national debt by 35% within 24 years by establishing a reserve of 1 million Bitcoin, according to a report by asset management firm VanEck. The projection aligns with a proposal introduced by Senator Cynthia Lummis. VanEck\u2019s analysis assumes Bitcoin will grow at a compounded annual growth rate (CAGR) of […]<\/p>\n","protected":false},"author":0,"featured_media":30578,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-30577","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/30577"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=30577"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/30577\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/30578"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=30577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=30577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=30577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}