Whether Donald Trump's promise of a national Bitcoin (BTC) reserve will come true remains a matter of curiosity, with analysts divided on the issue.
While opinion remains divided, major asset management firm VanEck has claimed in its latest report that a strategic Bitcoin reserve could reduce the US national debt by up to 36% by 2050.
VanEck analysts stated in a recent report that the United States could reduce its national debt by 35% over the next 24 years if it created a reserve of 1 million Bitcoins under a bill proposed by Senator Cynthia Lummis.
VanEck based his prediction on a Bitcoin assumption. Accordingly, if Bitcoin’s annual appreciation rate reaches 25%, its price could skyrocket to $42 million by 2049. As Bitcoin’s price increases, the US national debt will rise from $37 trillion at the beginning of 2025 to $119.3 trillion over the same period, with a 5% CAGR.
At this point, VanEck head of digital asset research Matthew Sigel and investment analyst Nathan Frankovitz said, “A Bitcoin reserve created could represent approximately 35% of the national debt by 2049, offsetting approximately $42 trillion in liabilities.”
Sigel and Franlovitz also suggested that the US halt the sale of Bitcoin and start initial Bitcoin purchases through the Exchange Stabilization Fund (ESF).
The duo added that under the Bitcoin bill presented by Lummis, the US could reuse the 198,100 Bitcoins it seized, while financing the remaining 801,900 Bitcoins through Emergency Support Functions.
*This is not investment advice.
