Can Bitcoin Erase $42 Trillion? U.S. Debt Solution by 2049

- Raising Bitcoin Reserves as a Measure to Reduce U.S. National Debt - Potential to Offset $42 Trillion Debt by 2049 [Unblock Media] Lately, there has been developing interest in utilizing Bitcoin as a means to reduce the U.S. national debt. According to VanEck Asset Management, if Senator Cynthia Lummis' proposal to create a reserve of 1 million bitcoins is implemented, the national debt could be reduced by 35% over the next 24 years. VanEck's estimates suggest that with a compounded annual growth rate (CAGR) of 25% in Bitcoin, its value could reach $42.3 million by 2049. In contrast, U.S. national debt is projected to grow from $37 trillion in 2025 to $119.3 trillion by 2049, increasing at an annual rate of 5%. This analysis indicates that the Bitcoin reserves could offset approximately $42 trillion of debt by 2049, representing 35% of the national debt. "This reserve could cover 35% of the national debt by 2049, offsetting around $42 trillion," stated Matthew Siegel, Head of Digital Assets Research at VanEck, and investment analyst Nathan Francovitz in a report dated December 20. In their 'optimistic' scenario, Bitcoin's 25% CAGR would start from a price point of $200,000 in 2025. Bitcoin is currently trading at around $95,360, and it would need to more than double to reach this price point. If Bitcoin rises to $42.3 million, it would account for approximately 18% of the world's financial assets, a significant increase from its current share of about 0.22% in the $900 trillion market. The idea of introducing Bitcoin reserves led to a surge in Bitcoin prices during the Trump administration. However, Senator Lummis' bill has yet to be reviewed by either the Senate or the House. Related Article: Can the Bitcoin Reserve Act End the Cryptocurrency's 4-Year Boom-Bust Cycle? Strike founder and CEO Jack Mallers suggested earlier this month that Trump could issue an executive order designating Bitcoin as a reserve asset on his first day in office. According to Lummis' proposal, the U.S. could utilize 198,100 bitcoins seized through asset forfeiture, and the remaining 801,900 bitcoins could be funded through emergency support functions or by selling part of the $455 billion in gold reserves for Bitcoin. This would be possible without the need to print more money or raise taxes. If Bitcoin adoption increases at the national, institutional, and corporate levels in the U.S., it would further bolster the CAGR projections for Bitcoin and Ether ETFs issued by various funds. Member countries of the BRICS alliance (Brazil, Russia, India, China, South Africa) can also influence Bitcoin prices, especially as Bitcoin increasingly gets used as a currency. Siegel explained in a December 21 X post, "There is a very high possibility that Bitcoin will be widely used as a settlement currency for global trade by countries looking to avoid exponentially increasing U.S. dollar sanctions."