Can Bitcoin Help Reduce US Debt? VanEck’s New Tool Reveals Insights

The US national debt is skyrocketing, raising concerns about its long-term impact on the economy. But what if Bitcoin could help? VanEck has introduced a new tool that explores this idea, letting users see how Bitcoin’s value could offset a portion of the country’s debt in the coming decades.

The numbers might surprise you. If Bitcoin continues to grow at a strong pace, could it actually become a key financial asset for the US government?

Let’s break down what the tool reveals.

How the Tool Works

The tool consists of two main calculators:

1. US National Debt Value Calculator – Estimates how much the national debt will grow over time.
2. Bitcoin Treasury Reserve Value Calculator – Projects the future value of a Bitcoin reserve based on price growth.

Right now, the US national debt stands at $36 trillion. If it continues to grow at a 5% annual rate, it could reach $116 trillion by 2049, according to the tool.

Currently, Bitcoin is priced at $98,269. If BTC grows at a 25% annual rate, a 1 million BTC reserve could be worth around $21 trillion by 2049 – equal to 18% of the projected US debt at that time.

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The BITCOIN Act and Its Proposal: What You Should Know 

The BITCOIN Act was presented to the US Senate by Senator cynthia lummis cynthia lummis Cynthia Lummis is a senator from Wyoming, United States. She has a net worth ranging from $20 million and $75 million. On her son-in-law's advice, she purchased Bitcoin and became the first U.S senator to possess cryptocurrency. She possesses no less than $230,000 worth of Bitcoin. She adopted office on January 3, 2021, the term terminates on January 3, 2027. She has always been focused on advocating for Wyoming's future. She struggled her entire career fighting for Wyoming families, communities, businesses, and values. Beginning at the halls of the Wyoming House to the Halls of the U.S. House.    Lummis was born on September 10, 1954, and graduated from the University of Wyoming, earning a bachelor's degree in animal science, and biology. She also achieved a Juris Doctor from the University of Wyoming College of Law. Her career experience comprises working as general counsel to previous Wyoming Governor Jim Geringer, Wyoming House of Representatives, as a treasure of Wyoming, and in the United States House of Representatives from Wyoming's at-large congressional district.   In 1990, she also worked as the chair of Mary Mead's gubernatorial campaign and Ray Hunkins's gubernatorial campaign, in 2006, also served on Bob Dole's presidential steering committee in Wyoming. Through her firmly beneficial crypto position, she developed the reception and fair guidelines of computerized resources in the United States. She voluntarily organized a great foundation for herself as a significant Bitcoin financial backer. She is professed to continue encouraging the developing cryptocurrencies industry in the United States and all over the world in 2022. Her urge for transparency on cryptographic forms of money and stable coins in U.S. regulation will maintain on becoming tremendous. She had been always looking for a store of value, and she believes bitcoin specifically is a great store of value and knew that scarcity will protect its value going into the future, unlike the U.S. dollar that they are printing more of every single day.    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 highlighted Bitcoin’s growing importance, stating:

“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.”

The projections suggest that if the US adopts Bitcoin as a strategic reserve, it could offset over 18% of total national debt by 2049. While this wouldn’t fully resolve the debt crisis, it presents an interesting possibility – could Bitcoin become a key tool for managing national finances?

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