VanEck, a leading asset management firm, has recently projected that the United States could significantly cut its national debt by as much as 36% by 2050 through adopting a Strategic Bitcoin Reserve.

This initiative aligns with Senator Cynthia Lummis’s Bitcoin Act, which advocates for the US to amass 1 million bitcoins within the next five years. The lawmaker argues that such a reserve could place future generations on a more stable financial footing, free from debts they did not accrue or benefit from.

How a Bitcoin Reserve Could Transform US Debt Management by 2050

VanEck’s analysis supports this strategy, predicting that such an investment could cut national liabilities by an estimated $42 trillion by 2049. This projection assumes a consistent debt growth rate of 5% and an annual bitcoin appreciation rate of 25%.

In this scenario, Bitcoin’s value would skyrocket to over $42 million, making it a substantial player in the global financial arena by 2049.

“Assuming today’s $900 trillion of total global financial assets compound at 7.0% from 2025 – 2049, Bitcoin would represent 18% of global financial assets in this scenario,” the firm added.

Mathew Sigel, VanEck’s head of research, emphasized Bitcoin’s potential role in reshaping the global financial landscape. He suggested that Bitcoin might become the leading settlement currency in global trade – presenting an alternative to the US dollar – especially for countries seeking to

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Author: Oluwapelumi Adejumo