Can Bitcoin Save the U.S. from Debt? Spoiler: Not Even Close! 😂💸

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So, after Trump’s blockbuster speech at the Nashville Bitcoin conference in July 2024, Sen. Cynthia Lummis decided to play superhero and introduced her Bitcoin reserve bill. She claims it’s all about reducing U.S. debt. But hold onto your wallets, folks! The latest VanEck research suggests that if this act gets the green light, Bitcoin might only offset a measly 18% of the national debt before Uncle Sam can even think about selling those shiny Bitcoin reserves. Talk about a slow burn! 🔥

Fast forward to Feb. 21, 2025, and VanEck drops a tool that’s supposed to show how the Strategic Bitcoin Reserve could impact U.S. debt. It’s like a magic eight ball, but instead of “Ask again later,” it lets the government decide how many bitcoins to buy each year, at what price, and how fast they think Bitcoin will grow. Spoiler alert: it’s all guesswork! 🎩✨

Now, let’s not forget the fine print! The research page has a disclaimer that says these calculations are based on past trends. So, if you’re hoping for a crystal ball, you might want to keep looking! 🔮

What can we learn from VanEck’s research?

According to the research, the U.S. treasury is dreaming big, hoping to collect a million bitcoins in five years and then sit on them for 20 years. Yep, you heard that right! For two decades, those bitcoins can only be used to cover the national debt. Sounds like a long game of Monopoly! 🎲

By December 2024, VanEck predicts the U.S. will have one million bitcoins by 2049, valued at a whopping $21 trillion. But wait! That will only cover about 18% of the national debt, which is expected to balloon to around $116 trillion by 2029. So, it’s like bringing a spoon to a knife fight! 🍴⚔️

These numbers are based on some pretty optimistic growth rates. VanEck thinks the national debt will grow by 5% a year, while Bitcoin will magically increase by 25% annually. By 2049, they expect Bitcoin to be worth $21 billion per coin. If only we could all be so lucky! 💰

But wait, there’s more! The government might snag even more than a million bitcoins through seizing, donations, and who knows what else. It’s like a treasure hunt, but with more paperwork! 🗺️

In conclusion, VanEck’s research suggests that the Strategic Bitcoin Reserve isn’t going to save the day anytime soon. Lummis was right when she said in July 2024 that it’s about reducing debt, not waving a magic wand to make it disappear! 🪄

To actually pay off the national debt (if we’re being realistic), the government would need to buy over five million bitcoins. Good luck with that! 😂

Could Bitcoin ever pay off U.S. debt completely?

In August 2024, during a Fox interview, Donald Trump boldly claimed that Bitcoin could help pay off trillions of U.S. debt. I mean, who doesn’t love a good fairy tale? 📖✨

JUST IN: 🇺🇸 Donald Trump says “maybe we’ll pay off our $35 trillion debt by handing them a little crypto check, handing them a little #Bitcoin.”

— Watcher.Guru (@WatcherGuru) August 2, 2024

Even if we ignore the potential debt growth (which could hit $50 trillion by 2035), the U.S. would need 36 million bitcoins at a price of $1,000,000 each. But here’s the kicker: there are only 21 million bitcoins in existence! It’s like trying to find a unicorn in a haystack! 🦄

BlackRock is the big cheese in the Bitcoin world, holding over half a million bitcoins. And then there’s Michael Saylor, who thinks only one nation-state can buy up 20% of the Bitcoin network. Sorry, other countries! You’re not invited

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2025-02-22 11:19