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Can Bitcoin Solve the US Debt Crisis? VanEck’s Tool Provides Insights

12 U.S. States Invest 330 Million in Strategy Stock for Bitcoin Exposure.webp.webp

The post Can Bitcoin Solve the US Debt Crisis? VanEck’s Tool Provides Insights appeared first on Coinpedia Fintech News

The tool, provided on the VanEck website, allows users to calculate whether BTC could help resolve the US debt crisis. 

The two prime components of the tool are the US National Debt Value calculator and the Bitcoin Treasury Reserve Value calculator. 

Currently, the US debt stands at $36 Trillion. The US National Debt Value calculator shows that if the debt grows at a compound annual growth rate of 5%, it will reach $116 Trillion by 2049.

As of now, the price of Bitcoin stands at $98,269. The US Treasury Reserve Value calculator shows that if the BTC price surges by a compound annual growth rate of 25%, the value of a 1M BTC reserve will become approximately $21 Trillion by 2049 – which is roughly 18% of the expected 2049 US Debt.    

The overall calculation suggests that if the US establishes a BTC strategic reserve as directed by the BITCOIN Act, it would be able to offset over 18% of its total national debt by 2049.

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  • Also Read :
  •   How Donald Trump’s Pro-Crypto Shifts Could Trigger the Next Bitcoin Rally
  •   ,

The BITCOIN Act and Its Proposal: What You Should Know 

The BITCOIN Act was presented to the US Senate by Senator cynthia lummis



 

Investor



The act proposes to establish a strategic Bitcoin reserve to serve as an additional store of value to bolster America’s balance sheet and ensure the transparent management of Bitcoin holdings of the federal government. 

While presenting the bill, Lummis said: “Bitcoin is transforming not only our country but the world, and becoming the first developed nation to use Bitcoin as a savings technology secures our position as a global leader in financial innovation.

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