The post Bitcoin to the Rescue? VanEck Predicts 35% Debt Reduction for US by 2049 appeared on BitcoinEthereumNews.com.

The United States could significantly reduce its national debt through the establishment of a strategic Bitcoin reserve, according to a recent report from asset management firm VanEck. The firm estimates that by 2049, such a reserve could cut the national debt by up to 35%, aligning with projections from similar studies that foresee substantial financial benefits. VanEck’s Bold Projections VanEck’s analysis hinges on Bitcoin’s potential compounded annual growth rate (CAGR) of 25%, propelling its price to $42.3 million per coin by 2049. This scenario assumes the U.S. accumulates 1 million Bitcoin, a proposal advocated by Senator Cynthia Lummis through her Bitcoin Reserve Act. VanEck suggests that with this strategy, approximately $42 trillion of the projected $119.3 trillion national debt in 2049 could be offset. Projected US national debt trends with Bitcoin Reserve Growth (2025–2049). Source: VanEck “Bitcoin’s integration into national reserves would not only serve as a financial hedge but could also provide a unique avenue for national debt reduction without additional taxpayer burdens,” said Matthew Sigel, VanEck’s Head of Digital Asset Research. National and State-Level Interest The idea of incorporating Bitcoin into national reserves has gained traction amid growing institutional adoption. President-elect Donald Trump has exprejssed openness to creating a strategic Bitcoin reserve, a move that echoes his administration’s broader crypto-friendly stance. Trump recently commented, “We’re going to do something great with crypto… we want to lead, not follow.” On a state level, initiatives are already underway. States like Pennsylvania, Texas, and Ohio have proposed legislation to allocate portions of their reserves to Bitcoin. For instance, Texas aims to establish a state Bitcoin reserve, signaling growing interest in decentralized assets as financial tools. Challenges and Skepticism Despite the enthusiasm, the proposal faces significant skepticism. Venture capitalist Nic Carter and investor Peter Schiff have questioned the viability of such a…

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Filed under: News - @ December 23, 2024 7:27 pm