VanEck has predicted that the United States could reduce its national debt by $21 trillion in the next 24 years.<\/p>\n
The firm\u2019s analysts believe that this could be achieved by creating a one million Bitcoin reserve over the next five years.<\/p>\n
According to the asset management company, a U.S. BTC reserve could slash the national debt if the crypto\u2019s price increases to $21 million by 2049. This would represent around<\/a> 18% of the total U.S. debt at that time.<\/p>\n \u201cIf the U.S. government follows the BITCOIN Act\u2019s proposed path \u2013 accumulating 1 million BTC by 2029 \u2013 our analysis suggests this reserve could offset around $21 trillion of national debt by 2049,\u201d said the institution\u2019s head of digital asset research, Matthew Sigel, in its latest report<\/a>.<\/p>\n VanEck\u2019s estimate assumes that the cryptocurrency\u2019s price will increase at a compounded annual growth rate (CAGR) of 25%, rising from $100,000 to $21 million per BTC in the next 24 years, while the country\u2019s national debt climbs at 5% CAGR from $36 trillion at the start of 2025 to $116 trillion over the same period.<\/p>\n The prediction aligns with the BITCOIN Act proposed by Senator Cynthia Lummis. Reacting to VanEck\u2019s proposal, the lawmaker posted<\/a> on X, \u201cGood idea.\u201d<\/p>\n The Republican has been a vocal supporter of the idea of a U.S. BTC reserve. She has previously advocated<\/a> for the initiative as a strategy to address the $36 trillion national debt and bolster the U.S. dollar\u2019s global standing. She argues that the asset\u2019s rising value could help reduce the debt over the next 20 years.<\/p>\n Lummis believes establishing this concept would correct past financial missteps and ease economic pressure on younger generations. However, the legislation that would facilitate the creation of the stockpile is yet to be reviewed by the Senate or House.<\/p>\n Following in the footsteps of President Donald Trump, the concept of a BTC stockpile is gaining international attention, and several governments are actively considering its potential use.<\/p>\n In Venezuela, opposition leader Mar\u00eda Corina Machado supports incorporating<\/a> the cryptocurrency into the country\u2019s supply, arguing that it could help recover stolen wealth and provide aid to its most vulnerable citizens.<\/p>\n Switzerland is also exploring<\/a> this possibility, with its National Bank evaluating the coin\u2019s utility as a backup asset alongside gold. Similarly, Hong Kong\u2019s legislator Wu Jiezhuang proposed integrating Bitcoin into the country\u2019s financial reserves in December to enhance economic resilience.<\/p>\n However, not everyone supports the idea. Former BitMEX CEO Arthur Hayes recently dismissed<\/a> it as an impractical strategy that would serve political interests rather than ensure financial stability.<\/p>\n The post VanEck Claims Bitcoin Reserves Could Offset $21T US Debt by 2049<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" VanEck has predicted that the United States could reduce its national debt by $21 trillion in the next 24 years. The firm\u2019s analysts believe that this could be achieved by creating a one million Bitcoin reserve over the next five years. VanEck\u2019s Estimate According to the asset management company, a U.S. BTC reserve could slash […]<\/p>\n","protected":false},"author":0,"featured_media":47059,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-47058","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\/47058"}],"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=47058"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/47058\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/47059"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=47058"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=47058"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=47058"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Growing Popularity Among Nations<\/h2>\n