YEREVAN (CoinChapter.com) — VanEck reports that a one-million Bitcoin reserve could help the United States reduce its national debt by $21 trillion over the next 24 years. The firm estimates that if Bitcoin (BTC) follows a compounded annual growth rate (CAGR) of 25%, its price could reach $21 million per coin by 2049.
According to the latest report, accumulating 1 million BTC by 2029 could reduce the country’s debt, which is projected to hit $116 trillion. Matthew Sigel, VanEck’s head of digital asset research, stated that under these conditions, Bitcoin could offset around 18% of the total U.S. debt at that time.
Bitcoin Growth and National Debt Impact
VanEck’s analysis assumes that BTC will grow from $100,000 in 2025 to $21 million in 2049, while the national debt rises at a 5% CAGR from $36 trillion to $116 trillion. This aligns with the proposal in the BITCOIN Act, introduced by Senator Cynthia Lummis.
“If the U.S. government follows the BITCOIN Act’s proposed path – accumulating 1 million BTC by 2029 – our analysis suggests this reserve could offset around $21 trillion of national debt by 2049,”
said Sigel in VanEck’s report.
Lummis, a supporter of Bitcoin, responded to the report on X, stating “Good idea.” She believes the U.S. BTC reserve could address economic concerns and contribute to managing the $36 trillion debt.
Senator Lummis and Bitcoin Reserve Plans
Senator Cynthia Lummis has backed Bitcoin adoption at a national level. She argues that adding BTC to the country’s financial strategy could help stabilize the economy and strengthen the U.S. dollar’s global position.
Lummis suggests that future generations will face economic pressure if national debt keeps increasing. She supports Bitcoin as an alternative asset. However, legislation supporting this plan has not yet been reviewed by Congress.
Other Countries Consider Bitcoin Reserves
The idea of a national Bitcoin reserve is expanding beyond the U.S. Venezuela’s opposition leader, María Corina Machado, has proposed that Bitcoin could help the country recover lost funds and provide financial assistance to its citizens.
Meanwhile, Switzerland’s National Bank is examining Bitcoin as a reserve asset alongside gold. Hong Kong’s legislator Wu Jiezhuang has also suggested including BTC in the region’s financial reserves to strengthen economic stability.
Bitcoin Reserve Faces Criticism
Some experts question the effectiveness of a Bitcoin reserve. Former BitMEX CEO Arthur Hayes recently dismissed the proposal. He claims that it would serve political interests rather than securing long-term financial stability.
Notably, despite doubts, governments and financial institutions continue to evaluate Bitcoin reserves and their impact on national debt.
