How a 1 Million Bitcoin Reserve Could Cut U.S. National Debt by 35%: Insights from VanEck

According to a recent report by asset management firm VanEck, securing a reserve of 1 million bitcoins could significantly impact the United States’ financial landscape. Should this proposal, championed by Senator Cynthia Lummis, materialize, it is projected that the national debt could decrease by up to 35% over the next two decades. The firm’s analysis posits that Bitcoin may achieve a hefty 25% compound annual growth rate (CAGR), potentially reaching a market valuation of $4.23 trillion by 2049. In contrast, the U.S. national debt is anticipated to rise from approximately $37 trillion to about $119.3 trillion, growing at a 5% CAGR. Matthew Sigel, VanEck’s Director of Digital Assets Research, along with Investment Analyst Nathan Frankovitz, emphasized the implications of this proposal, suggesting that a Bitcoin reserve could mitigate liabilities valued at around $42 trillion by the end of the projected period.