US Bitcoin Reserves Could Reduce National Debt by 35% in 2049: VanEck

Asset management company VanEck said the US could reduce its national debt by 35% over the next 24 years if it creates a reserve of 1 million Bitcoin, according to a bill proposed by Senator Cynthia Lummis.

VanEck estimates that Bitcoin will increase at an annual compound growth rate (CAGR) of 25% to $42.3 million by 2049, while the US national debt will increase at a CAGR of 5% from $37 trillion at the beginning of 2025 to $119.3 trillion in the same period. Matthew Sigel, head of VanEck’s digital asset research division, and investment analyst Nathan Frankovitz said in a report on December 20 that “this reserve could account for about 35% of national debt in 2049, offsetting about $42 trillion in debt.” Please provide the text to be translated. The “optimistic” scenario of this duo suggests that Bitcoin’s 25% CAGR will start from a price of $200,000 in 2025. Bitcoin is currently trading at $95,360 and will need to double to reach VanEck’s stated starting price. The price of Bitcoin rising to 42.3 million dollars means it accounts for about 18% of the world’s financial assets — a significant increase from the approximately 0.22% it holds in the current 900 trillion dollar market.

The upcoming Donald Trump administration has proposed the idea of a Bitcoin reserve, which has driven the price of Bitcoin up by over six figures, but Senator Lummis’ bill has yet to be reviewed by the Senate or the House of Representatives. Strike founder and CEO Jack Mallers declared earlier this month that Trump could issue an executive order on his first day in office to designate Bitcoin as a reserve asset. According to the Lummis Act, the United States can reuse the 198,100 Bitcoins held by the country through asset forfeiture, while the remaining 801,900 Bitcoins can be funded through the Emergency Support Function, by selling a portion of its $455 billion gold reserve to acquire Bitcoin or a combination of both - all without printing money and taxing the citizens, noted VanEck. The adoption of Bitcoin at the state, organizational, and business levels in the United States will also promote Bitcoin and EtherSigel and Frankovitz estimate the CAGR of the company issuing the exchange-traded fund. BRICS member countries (Brazil, Russia, India, China, and South Africa) can also affect the price of Bitcoin and make it increasingly used as a currency, Sigel explained in a post on X on December 21. They note that: “Bitcoin may well be widely used as a global payment currency by countries wanting to avoid the sudden increase in USD sanctions.” DYOR! #Write2Win #Write&Earn $BTC {spot}(BTCUSDT)