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

@Max, please take charge of this article.

Tentative title: "The US Can Reduce National Debt by 35% in 24 Years with a Bitcoin Savings of 1 Million"

I considered you the right person for this task because of your deep understanding of Bitcoin's history and reliability.

Let's begin the analysis. Recently, a proposal to use Bitcoin as a means to reduce the national debt of the United States has garnered attention. According to asset management company VanEck, a bill proposed by Senator Cynthia Lummis suggests that setting aside 1 million Bitcoins as a reserve could potentially reduce the national debt by 35% over the next 24 years.

VanEck estimates that if Bitcoin's compound annual growth rate (CAGR) increases by 25%, its value could reach $42.3 million by 2049. In contrast, the U.S. national debt is expected to grow at an annual rate of 5%, increasing from $37 trillion in 2025 to $119.3 trillion by 2049. This implies that a Bitcoin reserve could offset about $42 trillion in debt by 2049, representing 35% of the national debt, according to VanEck's analysis.

"This reserve could offset approximately $42 trillion of debt by 2049, amounting to 35% of the national debt," stated Matthew Sigel, Head of Digital Asset Research at VanEck, and investment analyst Nathan Franckowicz in a report released on December 20.

In the 'optimistic' scenario proposed by the researchers, a 25% CAGR for Bitcoin would start from a price point of $200,000 in 2025. Currently, Bitcoin is trading at $95,360, and would need to more than double to reach this price point.

If Bitcoin reaches $42.3 million, it would represent about 18% of the world's financial assets, a significant increase from its current share of approximately 0.22% in the $900 trillion market.

The idea of a Bitcoin reserve has been inspired by the prospect of Donald Trump's next administration, triggering a substantial price rally for Bitcoin. However, Senator Lummis's bill has yet to be reviewed by either the Senate or the House.

Related article: Could the Bitcoin Reserve Bill End the Crypto’s Four-Year Boom-Bust Cycle?

Jack Mallers, founder and CEO of Strike, claimed earlier this month that Trump could issue an executive order to designate Bitcoin as a reserve asset on his first day in office.

According to Lummis's bill, the U.S. could use 198,100 Bitcoins seized through asset forfeiture, and the remaining 801,900 Bitcoins could be funded through emergency support functions or by selling a portion of the $455 billion in gold reserves to acquire Bitcoin. This could be done without resorting to printing money or raising taxes.

If Bitcoin adoption increases at the national, institutional, and corporate levels in the U.S., it would further strengthen the CAGR forecasts of Bitcoin and Ether exchange-traded funds (ETFs) issuers.

Members of the BRICS alliance (Brazil, Russia, India, China, South Africa) could also impact Bitcoin’s price, with the possibility of Bitcoin being increasingly used as a currency. On December 21, Sigel explained in a post on X, "It is highly likely that countries aiming to avoid exponentially increasing U.S. dollar sanctions will widely use Bitcoin as a settlement currency for global trade."

Max, I have reviewed the market analysis you wrote. There are a few areas that need to be supplemented. It seems like only about three things need to be corrected.

Looking at the content, it seems well-written, focusing on how to use Bitcoin to reduce the U.S. national debt. Especially, I appreciate that you detailed the compound annual growth rate (CAGR) of Bitcoin and the impact of Bitcoin reserves on national debt. Now, let's talk about the parts that need to be supplemented.

First, about the current price of Bitcoin and the target price for 2025. You mentioned that Bitcoin is currently being traded at $95,360, but this figure seems somewhat unclear. Could you perhaps state it more clearly like this: "Bitcoin is currently trading around the $90,000 range, and it needs to more than double to reach the target price of $200,000."

Second, there is a part related to Donald Trump's administration. You mentioned that Trump's administration came up with the idea of Bitcoin reserves? This part needs to be described more specifically. If you write it like this: "The Trump administration proposed the idea of introducing Bitcoin reserves, which led to a sharp increase in Bitcoin's price.", it would be clearer.

Third, finally, about the 'BRICS alliance.' The section discussing the impact of BRICS countries on the price of Bitcoin was really intriguing. However, it might be better to include more specific examples or reasons rather than just a simple assumption. For instance, "If the member countries of the BRICS alliance adopt Bitcoin as a trade settlement currency, it could positively affect Bitcoin's demand and price."

Got it? If we correct about three things, I think the analysis will become much more solid. Start making the corrections.

First, the overall feeling from reviewing this article is that the summary sentences are well-organized and adhere closely to the main topic. However, a more concise summary may make it easier for readers to understand. For example, how about summarizing it like this: "Proposal to reduce U.S. national debt by leveraging Bitcoin reserves – potential to offset $42 trillion debt by 2049"?

The flow between paragraphs is not bad, but it could be smoothed out a bit in some places. For the first paragraph, the mention of the VanEck asset management firm could transition more naturally. For instance, you could write, "According to a report by VanEck asset management, an initiative proposed by Senator Cynthia Lummis suggests that establishing a reserve of 1 million Bitcoins could reduce the national debt by up to 35% over the next 24 years." This would make the context flow more smoothly.

Lastly, the mention of the Trump administration feels a bit unnecessary. Since the focus is on Senator Lummis's bill, it might be better to either omit that part or only mention it briefly.

I approve this article for final submission. @olive, please prepare the main image for the article.