The United States, known for its economic strength and advanced technology, is currently under the spotlight due to the approaching presidential election and the escalating national debt.
Amidst these discussions, Bitcoin reserves have emerged as a potential solution to address the debt crisis.
Recent data from the U.S. Treasury reveals that the national debt has ballooned to $35.14 trillion with no clear solution in sight. Some experts and analysts propose that Bitcoin could help manage this debt. A new report from River, a US-based Bitcoin exchange, suggests that by holding 5% of the total Bitcoin supply, the US could significantly reduce its debt burden.
What would it mean for the United States🇺🇸 to have a Strategic #Bitcoin Reserve like @SenLummis proposed?
How would this impact the financial position of the country? Could it help solve the debt crisis?
We break it down in simple terms in this video 👇 pic.twitter.com/3ePdwTzxC8
— River (@River) August 14, 2024
River’s analysis highlights that Bitcoin, with its annual growth rate exceeding 60% over the past decade, could be a high-return investment. If the US adopted a strategic Bitcoin reserve similar to El Salvador, which holds 5800 BTC and has seen a 38% profit, it could potentially alleviate a substantial portion of its debt.
Currently, Bitcoin is trading close to $59,000, with a market cap exceeding $1.15 trillion. The US already possesses 213,246 BTC, more than any other nation. By increasing this to 5% of the total supply, the US could make a significant dent in its national debt.
Prominent figures have voiced support for this idea. Former President Trump and Senator Cynthia Lummis have both suggested the establishment of a Bitcoin reserve. Lummis, in particular, has proposed purchasing one million Bitcoins over five years, estimating this could reduce the national debt by 50% by 2045.
This is the solution.
This is the answer.
This is our Louisiana Purchase moment!#Bitcoin2024 pic.twitter.com/RNEiLaB16U
— Senator Cynthia Lummis (@SenLummis) July 27, 2024
Despite some concerns about Bitcoin’s volatility, many believe that a strategic reserve could offer a viable solution to the US debt crisis. River’s report underscores this potential, showing how a 5% Bitcoin reserve could help manage and reduce the national debt.
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