CryptoQuant CEO Ki Yong-joo believes the United States could offset some of its national debt by establishing strategic reserves for Bitcoin (BTC), which would He says it is realistic but politically difficult.
Key shared his analysis in a social media post on December 25, highlighting how $790 billion in capital inflows have pushed Bitcoin's market cap to $2 trillion over the past 15 years. He added that this year alone there have been $352 billion in inflows, increasing market capitalization by $1 trillion.
Despite the feasibility of this move, several challenges arise in implementing it. Mr. Ki said:
“However, using a convertible asset like Bitcoin, rather than gold or dollars, to offset dollar-denominated debts could be difficult to obtain creditor agreement.”
bitcoin reserves
Analysts believe that using volatile assets like Bitcoin instead of traditional foreign exchange reserves like gold or the US dollar could complicate creditor relationships. Bitcoin's price history has shown significant fluctuations with notable peaks and troughs, raising questions about its suitability as a stable reserve.
However, they also argue that the establishment of a Strategic Bitcoin Reserve (SBR) could serve as a symbolic first step towards achieving broader acceptance.
Ki believes that if the US government classifies Bitcoin as a strategic asset, it may be possible to offset 36% of the US debt held domestically by acquiring 1 million Bitcoin by 2050. He emphasized that there is. This represents a change in thinking about debt management and could reduce the country's dependence on inflationary monetary policy.
The remaining 30% of debt held by foreign creditors could resist such a strategy. However, analysts stressed that this approach does not rely on fully settling the national debt in Bitcoin, which could make it more practical.
economic buffer
Matthew Sigel, head of digital asset research at VanEck, looked into the proposal further and estimated that the U.S. Treasury could accumulate 1 million bitcoins over five years at a price of $200,000 per coin.
Siegel's analysis shows that rising Bitcoin prices could have a significant impact on the value of national debt reserves by 2049. This analysis suggests that under favorable growth conditions, reserves can cover a significant portion of debt and create a new economic cushion against future debt. .
Although the concept is speculative, it highlights the growing interest in alternative strategies for managing government debt through digital assets as the cryptocurrency market matures. Proponents argue that Bitcoin's decentralization and scarcity allow it to be positioned as a hedge against inflation, potentially providing long-term financial stability.
Still, widespread adoption will require regulatory clarity and international cooperation to ensure Bitcoin is seamlessly integrated into national reserves.
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