🌎 Bitcoin Reserve to Offset 18% of US National Debt According to VanEck

VanEck Research Suggests Bitcoin Reserve May Offset 18% of US National Debt

Following the introduction of the Bitcoin reserve bill by Sen. Cynthia Lummis, VanEck has released a research tool indicating the potential impact of the Strategic Bitcoin Reserve on US debt. The calculator allows users to set parameters such as the number of bitcoins purchased annually, the average price of bitcoins in 2025, and the average compound growth rate of the BTC price and US debt.

Understanding the Research

The research is based on the assumption that the Bitcoin Act, introduced by Lummis, will be adopted this year without significant changes. It suggests that if the US treasury collects one million bitcoins in five years and holds them for 20 years, the total value of these bitcoins could amount to $21 trillion, offsetting around 18% of the national debt, which is expected to reach $116 trillion by 2029.

The research assumes a 5% annual growth rate of US debt and a 25% annual growth rate of the BTC price. However, it’s essential to note that these figures are based on past trends and do not necessarily reflect future values.

Key Findings

The US will amass one million bitcoins by 2049, with a total value of $21 trillion.
The bitcoins held in the treasury could offset around 18% of the national debt.
The government may accumulate additional coins through seizing, donations, and other means.

“There’s only room for one nation-state to buy up 20% of the Bitcoin network, and obviously, I think it should be the United States.” – Michael Saylor

Can Bitcoin Pay Off US Debt Completely?

While Bitcoin may be seen as a partial solution, the idea of it paying off the entire US debt is unlikely. To fully pay off the national debt, the government would need to purchase over five million bitcoins, which is not feasible given the maximum supply of Bitcoin is set at 21 million.

Additionally, exchanging a large number of bitcoins for cash would be challenging, and the dumping of these coins would likely negatively impact the price, discounting the remaining reserves.