CryptoQuant’s chief executive believes that a strategic national Bitcoin (BTC), reserve would be able to offset US debt.
Ki Young Ju told his social media followers (389,600) on X platform that realized capital inflows of $790 billion have inflated Bitcoin’s value to $2 trillion in the last 15 years.
This year, 352 billion dollars in new inflows added $1 trillion in market capital.
To gain the creditors’ consent, it may be difficult to use a pumpable currency like Bitcoin as a way of offsetting dollar-denominated loans. Bitcoin needs to be a global currency that is accepted by all countries, just like gold, in order for it to gain broader acceptance. As a first symbolic step, establishing a Strategic Bitcoin Reserve could be a good idea.
Since 70% of U.S. domestic debt is held in the country, it becomes possible to offset 36% by purchasing 1 million Bitcoins by 2050 if U.S. Government designates Bitcoin as an asset of strategic importance.”
CryptoQuant’s CEO acknowledges that 30% of the debt is held by non-US entities, however he maintains that this strategy is still practical.
If a consensus can be reached about Bitcoin’s current status, this goal is possible.
Only old whales would dump BTC in order to attack the US. If governments keep accumulating Bitcoins until 2050, and the price continues to rise, then I don’t think they will dump them .”
Matthew Sigel of VanEck’s exchange-traded funds (ETFs) and head of research for digital assets, first explained how a Bitcoin reserve would be able to offset US debt.
Assume US Debt grows at 5% (compared to last decade’s 8% annual compound growth rate), and BTC Price compounds at 25%.
Under such a scenario the US Strategic BTC Reserve will hold assets equal to 36% debt in 2050.
This scenario would see BTC at $42 million/coin, which is the same as Michael Saylor’s goal, and the global market capitalization would equal 18%.
Even at 15% annual compound growth, BTC would be worth a lot.”
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The post CryptoQuant’s CEO: Using Strategic Reserve Bitcoin to Offset US Debt is Feasible and Calls it Practical could be updated as new information becomes available.
