CryptoQuant CEO Ki Young Ju believes that the United States can offset some of its national debt by creating a strategic strategy. Bitcoin Reserve (BTC), a move he describes as practical but politically challenging.
Kay shared this analysis in a social media post on December 25, where he highlighted that $790 billion in capital inflows have pushed Bitcoin's market cap to $2 trillion over the past 15 years. He added: “This year alone, 352 billion dollars of inflows contributed to one trillion dollars of added value in the market.”
Despite the feasibility of this movement, its implementation faces several challenges. Who said:
However, using a pumpable asset like bitcoin to settle dollar-denominated debts — rather than gold or dollars — could make getting creditor consensus challenging.
Bitcoin storage
Analysts believe that using a volatile asset like Bitcoin instead of traditional reserves like gold or the US dollar could complicate creditor relations. Bitcoin's price history shows considerable volatility, with significant highs and lows, raising questions about its suitability as a stable reserve.
However, they also argue that the creation of a Strategic Bitcoin Reserve (SBR) could serve as a symbolic first step towards achieving wider adoption.
Key emphasized that if the US government classifies Bitcoin as a strategic asset, it could be possible to pay off 36% of US domestic debt by buying one million Bitcoins by 2050. This represents a shift in thinking about debt management that potentially reduces the country's reliance on inflationary monetary policies.
The remaining 30 percent of debt held by foreign creditors may resist such a strategy. However, analysts emphasized that this approach does not depend on the full settlement of the national debt with Bitcoin, which could increase its practicality.
economic protector
Matthew Siegel, head of digital asset research at VanEckfurther explored the proposal, calculating the US Treasury's potential to accumulate 1 million bitcoins over a five-year period, starting at a price of $200,000 per coin.
Siegel's analysis shows that Bitcoin price growth could significantly affect the value of reserves relative to the national debt by 2049. This analysis shows that in favorable growth conditions, the reserve can cover a significant part of the debt and create a new economic buffer against future debts. .
While the concept is speculative, it highlights the growing interest in alternative strategies for managing national debt through digital assets as the crypto market matures. Proponents argue that Bitcoin's decentralized nature and scarcity could position it as a hedge against inflation and potentially provide long-term financial stability.
However, widespread adoption requires regulatory transparency and international cooperation to ensure the seamless integration of Bitcoin into national reserves.
