Bitcoin: The New Debt Solution for the U.S.

VanEck, a global crypto investment firm, has proposed a novel approach to managing U.S. debt: accumulating a strategic reserve of Bitcoin. According to their latest report, if the government follows the Bitcoin Act's proposed path, it could help offset over $20 trillion in U.S. national debt by 2049.

VanEck's projections are based on a 5% annual increase in U.S. national debt, which is currently at $36.22 trillion. They estimate that by 2049, total debt could reach around $116 trillion. Meanwhile, Bitcoin is expected to grow at a compound annual rate of 25%, potentially reaching $21 million per BTC by 2049.

The firm's analysis suggests that if the U.S. government accumulates 1 million BTC by 2029, this reserve could offset around $21 trillion of national debt by 2049. This would amount to 18% of total U.S. debt at that time. VanEck's latest statement builds on their December report, which predicted a 35% reduction in national debt by 2050, with Bitcoin potentially reaching a price of $42.3 million by 2049.

VanEck has also examined potential Bitcoin acquisitions at the state level. A report earlier this month estimated that state-level Bitcoin Strategic Reserve bills could lead to purchases totaling 242,787 BTC, roughly $23.5 billion. The firm further suggested that pension fund investments could increase this figure, further integrating Bitcoin into public finance.

The debate over the U.S. using Bitcoin to offset national debt gained momentum after Senator Cynthia Lummis, a prominent Bitcoin advocate, introduced the Bitcoin Act last July. The bill proposes establishing a Strategic Bitcoin Reserve to strengthen the U.S. dollar. Lummis clarified the act's intent, stating that the 'trategic' purpose is to explicitly, strategically, pay down government debt hanging over the head of every American, putting future Americans on a better footing, unencumbered by debt that they never supported or benefited from.

As discussions around a Bitcoin reserve gain traction, prominent figures like Michael Saylor have voiced support, projecting its potential impact on the U.S. economy at $81 trillion. Meanwhile, former Binance CEO Changpeng