VanEck: If the United States establishes a strategic reserve of 1 million BTC, it can reduce the national debt by 35%

VanEck assumes that if the United States establishes a national reserve of 1 million BTC, it may reduce the national debt by 35% in the next 24 years. This proposal is based on the suggestion of Cynthia Lummis, a Republican senator from the United States. (Background: Peter Schiff criticized the 'BTC strategic reserve': Trump should create a US currency with a cap of 21 million coins, and I have designed the logo) (Background: Full text of the 'US BTC strategic reserve' administrative draft: BTC to be managed as a permanent national asset) Issuance The asset management company VanEck, which has multiple Cryptocurrency ETFs, today (23rd) proposed a hypothesis: if the United States establishes a national reserve of 1 million BTC, it may reduce the national debt by 35% in the next 24 years. This idea is based on the legislative proposal of Cynthia Lummis, a Republican senator from the United States, which has sparked public discussion about including BTC in the national strategic reserve. Further reading: Will the United States buy 1 million BTC? Senator Cynthia Lummis' new proposal more powerful than Trump's? The possible connection between US debt and BTC It is expected that from 2025 to 2049, US debt will increase with the growth of the BTC reserve. VanEck predicts that if the BTC price grows at a compound annual growth rate (CAGR) of 25% per year, it will reach 42.3 million USD by 2049. At the same time, US national debt may increase at an annual growth rate of 5%, from 37 trillion USD in early 2025 to 119.3 trillion USD. According to a report by VanEck's digital asset research director Matthew Sigel and investment analyst Nathan Frankovitz, if a national reserve of 1 million BTC can be achieved, these assets will account for 35% of the national debt in 2049, potentially offsetting debts of up to 42 trillion USD. 'Optimistic scenario' of BTC price rise Source: VanEck, estimating the compound annual growth rates of US national debt, BTC reserve holdings, and BTC value at 25%. VanEck's 'optimistic scenario' assumes a 25% compound annual growth rate for BTC, with the BTC price starting at 200,000 USD in 2025 and reaching 42.3 million USD per coin in 2049. At that time, the BTC Market Cap will account for 18% of the 900 trillion USD global financial assets market, far higher than the current ratio of about 0.22%. Cynthia Lummis' BTC reserve concept Cynthia Lummis, a Republican senator considered an ally of Trump, has proposed a strategic plan for BTC. She suggested that the Federal Reserve should be allowed to purchase and hold BTC as part of a strategy to address the national debt issue. Lummis stated: 'I hope our federal government has a strategic BTC reserve to help support the US dollar as the world's reserve currency.' Related reports Peter Schiff criticized the 'BTC strategic reserve': Trump should create a US currency with a cap of 21 million coins, and I have designed the logo Full text of the 'US BTC strategic reserve' administrative draft: BTC to be managed as a permanent national asset Trump rang the bell at the NYSE: Will establish a Cryptocurrency strategic reserve like oil, and was selected as Time magazine's Person of the Year.〈VanEck: If the United States establishes a strategic reserve of 1 million BTC, it can reduce the national debt by 35%〉This article was first published on BlockTempo, the most influential blockchain news media in the dynamic area.