Bitcoin Strategic Reserve: Viable Solution to Reduce US Debt, Says CryptoQuant CEO
- Bitcoin could reduce 36% of US debt by 2050.
- Bitcoin's strategic reserve symbolizes the asset's global authority.
- Bitcoin’s projected growth strengthens economic viability.
CryptoQuant CEO Ki Young Ju recently highlighted on social media the feasibility of using Bitcoin as a strategic tool to reduce the United States’ debt. In a post, he stated that the creation of a Strategic Bitcoin Reserve (SBR) could play an important role in offsetting a significant portion of the U.S. debt, especially the portion held by domestic institutions.
Strategic # Bitcoin Reserves to offset US debt is a feasible approach.
Over the past 15 years, $790 billion in realized capital inflows have propelled Bitcoin's market cap to $2 trillion. This year alone, $352 billion in inflows have added $1 trillion to its market cap.… https://t.co/E2sorulSii pic.twitter.com/Xg1SR9ixqB
- Ki Young Ju (@ki_young_ju) December 21, 2024
According to Ju, Bitcoin has reached a market cap of $2 trillion over the past 15 years, with a total of $790 billion in capital inflows. In 2024 alone, capital inflows reached $352 billion, bringing the market cap of the leading cryptocurrency to $1 trillion. According to the CEO, these numbers prove the asset’s growth potential.
Ju proposed that if the U.S. government acquired 1 million Bitcoins by 2050, it could reduce 36% of the national debt, which is currently 70% held by domestic institutions. However, he acknowledges that the remaining 30%, held by foreign creditors, might resist the idea. Despite this, he believes the strategy remains viable and practical, even if it does not resolve the entire debt.
CryptoQuant’s CEO also emphasized that in order to achieve global acceptance, Bitcoin must be recognized on a scale similar to gold. In this sense, a Bitcoin strategic reserve could be the “first symbolic step” towards legitimizing the cryptocurrency as a strategic and reliable financial asset.
Matthew Sigel, head of digital asset research at VanEck, reinforced the view that a long-term plan with Bitcoin could benefit the US economy. He highlighted that if the price of Bitcoin follows a 25% compound annual growth rate, the cryptocurrency could reach $42 million per unit by 2050, making it an asset representing 36% of US debt.
At the time of publication, the price of Bitcoin was quoted at US$98.653,89, up 0.1% in the last 24 hours.
Finally, Ju pointed out a potential risk: the massive sale of Bitcoin by old holders (the so-called “whales”) to destabilize the American economy. However, he believes that, with the asset continuing to be accumulated by governments and its value increasing until 2050, this scenario is unlikely.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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