VanEck Assesses Bitcoin Reserve’s Impact on US National Debt

The establishment of a strategic bitcoin reserve could help the United States reduce its national debt by 35% by 2050, according to an assessment by VanEck.

Experts predict that digital gold will rise to $42.3 million by 2049, with an average annual growth rate of 25%. Meanwhile, federal government obligations are expected to increase to $119.3 trillion (CAGR 5%).

As a result, the share of the bitcoin reserve in the US national debt is projected to rise to 35%.

In a scenario where the price of the first cryptocurrency rises to $42.3 million, its share in the total valuation of global financial assets would reach 18%. Currently, this figure stands at approximately 0.22%.

VanEck also suggested that member countries of BRICS might consider using digital gold.

Our children can decide, after they thank us. By then, it’s very possible bitcoin will be widely used as a settlement currency for global trade by countries who wanted to avoid the parabolic increase in USD sanctions that have been imposed. So, the utility would be clearer.…

— matthew sigel, recovering CFA (@matthew_sigel) December 21, 2024

“It is quite possible that bitcoin will be widely used as a settlement currency for global trade between countries seeking to avoid the impact of sanctions,” noted Matthew Sigel, Head of Digital Asset Research at VanEck.

Previously, Binance founder Changpeng Zhao predicted a race among states in the digital gold market if Trump’s plan is implemented.

The creation of a bitcoin reserve was one of the promises made by the elected president during the election campaign.

In July, Senator Cynthia Lummis introduced a bill proposing the purchase of 1 million BTC (no more than 200,000 BTC per year over five years) using the gold reserves of the Fed.

In December, Lummis expressed hope for support from Scott Bessent, nominated by Trump for the position of Treasury Secretary, in advancing the document.

Earlier, MicroStrategy founder Michael Saylor estimated the impact of creating a bitcoin reserve for the US at $81 trillion.

Sam Lyman, Director of Government Relations at Riot Platforms, described the initiative as a geopolitical tool for Washington.