of US could reduce national debt by 35% within 24 years by establishing 1 million Bitcoin reservesAccording to a report by asset management company VanEck,. This prediction is consistent with a proposal introduced by Sen. Cynthia Lummis.
VanEck’s analysis assumes that Bitcoin will grow at a compound annual growth rate (CAGR) of 25%, reaching $42.3 million per BTC by 2049. At the same time, of us national debt is expected It is expected to grow at a CAGR of 5%, from $37 trillion to $119.3 trillion in 2025.
By 2049, Bitcoin reserves could offset approximately $42 trillion of national debt. According to in the report Written by Matthew Sigel, Head of Digital Asset Research, and Nathan Frankovitz, Investment Analyst at VanEck.
Explore: 10 Best Decentralized Exchanges for September 2024
VanEck project assumes Bitcoin price will reach $200,000 in 2025
This prediction assumes that the price of Bitcoin will rise. from $200,000 in 20205—a That’s a significant increase from the current trading price of $95,360.
If Bitcoin reaches its projected valuation of $42.3 million, it will account for about 18% of global financial assets, a significant increase from its current share of 0.22% in a $900 trillion market.
the idea us Bitcoin reserves are gaining momentum following discussions within President-elect Donald Trump’s administration, fueling a rise in Bitcoin’s price by more than $100,000.
Additionally, Strike CEO Jack Mullers speculated that President Trump may issue an executive order designating Bitcoin as a reserve asset on his first day in office. However, Sen. Lummis’ bill proposing such a reserve fund would has not yet been reviewed by Congress.
The Lummis bill would repurpose 198,100 Bitcoins seized from criminal activity and provide for the remaining 80,000 Bitcoins through means such as selling a portion of the country’s $455 billion gold reserves and using emergency relief capabilities. The company is proposing to raise 1,900,000 Bitcoins.
VanEck emphasized that this strategy avoids printing money and providing taxpayer funding.
“We have a model that assumes #Bitcoin will become a reserve asset by 2050 and will be held by central banks with a 2% weight. In this model, the target price for Bitcoin reaches $3 million .”
– Van Eckpic.twitter.com/rrHa2wnrDa
— BoldBitcoin (@BoldBitcoin) November 19, 2024
Bitcoin adoption at the federal, institutional, and corporate levels could further support Bitcoin’s growth. Mr. VanEck pointed out that the adoption of Bitcoin by the BRICS countries (Brazil, Russia, India, China, and South Africa) could also have a significant impact on our country. use as World trade settlement currency.
Siegel said countries are trying to avoid increasing use. us Dollar sanctions could lead to wider acceptance of Bitcoin in international trade.
Explore: Best Bitcoin Mining Pools of 2024
us States consider adding Bitcoin to reserves
This is what happened to Ohio Latest us Conditions to consider Following the introduction of a new bill by House Republican Leader Derek Merrin, it would add Bitcoin to the Treasury reserves.
This effort mirrors recent moves by Texas and Pennsylvania to establish Bitcoin reserves.
December 12, 2024 Texas Congressman Giovanni Capriglione Introducing the Texas Strategic Bitcoin Reserve Actthe National Comptroller has proposed holding Bitcoin as a reserve asset for at least five years.
Pennsylvania took a similar step in November, with U.S. Rep. Mike Cavell announcing that the Treasury Department would allocate up to 10% of its balance sheet to Bitcoin, citing its potential to hedge economic uncertainty. He proposed a bill that would allow this.
explore: 20 new crypto coins to invest in 2024
The post VanEck: US could reduce national debt by 35% with 1 million Bitcoin reserves appeared first on 99Bitcoins.
