Does Bitcoin Reserve Really Solve the Debt Problem of the United States?

The idea of ​​using Bitcoin reserves as a solution to the US debt has been discussed since VanEck released its report. This report values ​​Bitcoin at $42 trillion by 2049, wiping out the $42 trillion US debt, in a bold vision beyond just being a digital currency. VanEck's report supports Senator Lummis' bill for the US to buy 1 million Bitcoin in 5 years. With Bitcoin growing 25% per year, supporters believe it can be part of the national financial system. Bitcoin as a debt management tool VanEck's report presents a scenario in which the value of Bitcoin allows the United States to pay off 35% of the national debt by 2050. The report predicts that the price of Bitcoin will reach $200,000 in 2025, potentially increasing annually and bringing the total market capitalization to $42 trillion by 2049. "The stable growth of Bitcoin makes it a promising asset for balancing national finances," Matthew Sigel, Head of Digital Asset Research at VanEck, said in a report on December 20. Clearly, this is a rather optimistic scenario, assuming everything goes well and Bitcoin is widely accepted as a global asset. VanEck analyst Nathan Frankovitz said that if the three characteristics of Bitcoin - scarcity, decentralization, and growth - can be monetized, long-term stability in the US economy will be certain. Global Consequences In addition to reducing the U.S. debt, a strategic Bitcoin reserve could change the global financial system. In fact, VanEck's report suggests that by 2049, Bitcoin could reach $42.3 million per coin, accounting for 18% of global assets - up from the current 0.22%. Sigel suggests that Bitcoin could become a payment currency in international trade, especially for countries wishing to avoid using the U.S. dollar due to sanctions. Sigel said: "It is very likely that Bitcoin will be used as a payment currency for global trade by countries wanting to avoid the sharp increase in USD sanctions that have been applied". This could make Bitcoin a global reserve asset for emerging markets trying to reduce excessive dependence on the US dollar. Steps to apply VanEck has outlined very specific steps to integrate Bitcoin into the US financial system. Part of this proposal is to postpone the sale of Bitcoin from the seized reserve fund of the United States, which is believed to hold 198,100 BTC. Keeping these reserve funds will be a good starting point without tax implications:. The report also proposes revaluing the US gold reserves at market prices and using the Exchange Stabilization Fund to buy Bitcoin. This will help acquire Bitcoin reserves more quickly than waiting for full legislation. According to VanEck, these preliminary actions will make the United States a leader in the rapidly changing digital world. Criticism and alternative solutions Despite promises, the idea of storing Bitcoin has faced criticism. Critics argue that it does not guarantee the desired financial stability or strengthen the US dollar. Peter Schiff, an economist who was once skeptical of Bitcoin, has been refuted by creating a new digital asset called USAcoin. He believes that a national reserve asset created by the US government would be better for them than Bitcoin. Meanwhile, Nic Carter, a venture capitalist, expressed skepticism about the full balance sheet accounting of national debt offset by Bitcoin reserves and market volatility, along with other risks associated with implementation. Conclusion part Reserving Bitcoin is a pretty crazy financial idea that could change the face of cryptocurrency in the national and global economy. For VanEck, this is a transformation, for others, it's caution, so a suitable risk assessment and plan need to be established. As the United States realizes this, the debate over Bitcoin in national strategies continues to emphasize its importance in the global economy. DYOR! #Write2Win #Write&Earn $BTC {spot}(BTCUSDT)