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    Think Tank President Skeptical About Bitcoin’s Role in Solving US Debt, Despite Support from Senator Lummis and President Trump

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    Think tank president Avik Roy doubts that acquiring Bitcoin can solve America’s mounting $35 trillion debt. Despite admiring US Senator Cynthia Lummis’ idea for a Bitcoin reserve, Roy predicts it is not a definitive solution to the country’s $2 trillion yearly federal deficits, but it may stabilize the bond market. He further voiced concern about potential depletion of the reserve, comparing it to the US’s exhausted gold stash in the 70s. Senator Lummis’ Bitcoin Act suggests buying a million Bitcoin, using some of the US’s 8,000 tons of gold. Incoming President Trump also supports establishing a national Bitcoin reserve.

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    Think tank president Avik Roy recently voiced his thoughts on US Senator Cynthia Lummis’ idea to create a Bitcoin reserve as a way to reduce America’s huge debt, now at a record-breaking $35 trillion. During a talk at the North American Blockchain Summit in Dallas, Texas, Mr. Roy expressed doubt that acquiring tons of Bitcoin alone could sort out America’s financial woe that has been steadily climbing since the 80s.

    He believes that while having a Bitcoin reserve is a neat idea, it wouldn’t be a one-shot solution to the increasing federal deficits, now at around $2 trillion yearly. A Bitcoin reserve could, however, help stabilize the bond market.

    Despite this, he’s worried that the US might just deplete this reserve, much like what happened to their gold stash in the 70s. He explains that since 1981, America’s national debt has been steadily increasing, from $3.81 trillion to a staggering $35.46 trillion today.

    In response to the country’s financial dilemma, Senator Lummis proposed the Bitcoin Act for the US government to buy a million Bitcoin, which is about 5% of its total supply, with plans of keeping it for at least 20 years. The Wyoming Senator suggested using some of the US’s 8,000 tons of gold, worth around $448 billion, to fund this Bitcoin reserve.

    Apparently, even incoming President Donald Trump is into the idea, as he promised last July to establish a national Bitcoin stash. Regardless of everyone’s interest in Bitcoin, it seems there’s much more work to be done to tackle US’s massive debt.

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