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    VanEck predicts US national debt could decrease by 35% with Bitcoin strategy by 2049

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    Investment firm VanEck has speculated that if the U.S. reserved 1 million Bitcoin, the national debt could shrink by 35% by 2049. VanEck’s prediction rests on the assumption that Bitcoin’s value will increase by 25% annually, reaching $42.3 million per Bitcoin by 2049, offsetting about $42 trillion of U.S. national debt. However, their calculation requires Bitcoin to trade at $200,000 by 2025. A notion of a Bitcoin reserve is under contemplation and may be adopted as per a bill by Senator Cynthia Lummis, using Bitcoin obtained from asset seizures and selling gold reserves.

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    If the U.S. tucked away 1 million Bitcoin into a reserve, we could see a whopping 35% shrunk in the national debt by 2049. At least that’s what investment group VanEck thinks, based on a bill suggested by Senator Cynthia Lummis.

    VanEck is taking a guess that Bitcoin’s value will continue to rise at a rate of 25% per year. This means by 2049, one Bitcoin would be worth an eye-popping $42.3 million. And considering the U.S. national debt is predicted to grow 5% annually, these figures could offset about $42 trillion of it.

    But here’s the thing, we need to start from Bitcoin trading at $200,000 in 2025, for VanEck’s big plan to work. Right now, Bitcoin is sitting pretty at $95,360, so we need more than a double bump.

    If Bitcoin’s price does get to $42.3 million, it would play a significant role in the world’s financial assets, stepping up from a teeny 0.22% to a noteworthy 18%.

    Interestingly, the idea of having Bitcoin reserve has been toyed around by the incoming Trump administration. It has even sparked a Bitcoin price rally. But remember, Senator Lummis’ bill still needs to win the nods of Senate or House.

    Strike’s CEO, Jack Mallers made an interesting claim, suggesting Trump might pull the trigger on day one and make Bitcoin a reserve asset.

    As per Lummis’ bill, the U.S. could make use of the Bitcoin it already nabbed from asset seizures, and the rest could be funded through emergency support, selling some of the gold reserves, or a combo of both. All of this without having to print more dollars or bugging taxpayers.

    On top of this, Bitcoin could see a boost at the state, institutional, and corporate level. And if more countries start to take Bitcoin seriously, it could even be used as a currency for global trade. Since U.S. sanctions have been piling up, many countries might find using Bitcoin useful to dodge them.

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