Can Bitcoin Erase US Debt By 2049? VanEck Research Weighs In
The post Can Bitcoin Erase US Debt By 2049? VanEck Research Weighs In appeared on BitcoinEthereumNews.com.
VanEck has announced a bold prediction that Bitcoin will play a critical role in managing the United States’ rising national debt. The study, based on Senator Cynthia Lummis’ proposed Bitcoin Act, shows that a strategic Bitcoin reserve may partially balance the country’s debt by 2049. But how feasible is this concept? The Potential Impact Of Strategic Bitcoin Reserves The study examines a scenario in which the US government obtains up to 1 million BTC during a five-year period. If this strategy comes to fruition, VanEck believes that such a reserve may help balance almost $21 trillion in national debt by 2049. Based on forecasts of future debt growth, this equates to around 18% of the expected total debt at the time. However, this positive forecast is heavily reliant on Bitcoin’s price trajectory. VanEck’s model forecasts that BTC will grow at a 25% compounded annual rate (CAGR). Starting with an estimated acquisition price of $100,000 per unit in 2025, the crypto would need to see sustained price increases over the next two decades. Source: VanEck Debt Growth Versus Bitcoin Appreciation The study considers the expected 5% annual rate of increase in US debt trajectory. Any effort to balance the predicted $100 trillion national debt by 2049 will need assets with big appreciation potential. Though highly volatile, Bitcoin presents both a challenge and an opportunity. A 25% CAGR is an ambitious aim considering past pricing volatility, regulatory uncertainties, and industry acceptance patterns. Should the slow down in the crypto’s expansion, the reserve might not meet expectations, therefore lessening its value in addressing national debt. BTC is now trading at $96,456. Chart: TradingView Bitcoin As A Government Asset VanEck’s view is consistent with a broader discussion concerning the leading digital currency’s role in national economies. Countries such as El Salvador have already adopted…
Filed under: News - @ February 22, 2025 10:23 pm