MEXCIs Bitcoin Reserve The Solution To US National Debt?
The United States of America is no doubt the most developed country, well known for its army troops and resources. It has been the topic of discussion from time to time for its vast growth, multi-culture, and advanced technology. But now, as the 2024 presidential election is near, the attention is on candidates like Trump and their promises for the economy and crypto industry development. This also questions the increasing load of the US national debt, which the country has no possible way to pay. Interestingly, the Bitcoin Reserve has become one potential option to battle this year’s long debt.
Reports Reveal Bitcoin Reserve Could Pay Off US National Debt
As per the U.S. Treasury Fiscal Data, the country has $35.14 trillion in federal debt and is growing more with almost no perfect solution. Many analysts and industry professionals believe Bitcoin could be one way to deal with it.
River, a US-based Bitcoin exchange, has assembled new reports revealing how managing a BTC reserve could help with the US national debt. Additionally, ex-president Trump announced Bitcoin strategic reserve in a discussion with the CEO of Bitcoin Magazine.
As per the River report, if the country could hold 5% of the total supply of Bitcoin, the most popular cryptocurrency, it could pay off a major load of its debt. River has explained how holding an asset that grows higher than printing money could tackle the US debt. As Bitcoin has been growing more than 60% every year for the last ten years, it is a popular candidate for high-return investment.
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
El Salvador, a country in Central America, has already opened a strategic Bitcoin Reserve, holding 5800 ($340 Million). This investment has turned profitable for the country as they have already made a 38% profit ($50 Million). And if the United States of America did the same, the same profit could contribute towards the national debt.
At the of writing, the BTC price is closer to the $59K mark with a market cap of $1,155,049,577,387. But it has risen to as high as $73,750.07 a few months ago. This was the best performance of this cryptocurrency since its launch. With this, BTC is now eyed by major investors, and the US government could be one of those.
The river report also revealed that the US already holds 213,246, which is more than any country. So, they already have a great start, and if they could raise it to 5% of the total BTC supply, they could pay a major portion of their debt.
Supporters of The Development of Strategic BTC Reserve
In a different course of time, Trump has already presented the idea of the BTC Reserve. However, he is not the only one to think of this. Cynthia Lummis, a US Senator presented the same at the Bitcoin Conference 2024. She proposed the idea of buying one million Bitcoin (5% of total BTC supply) over the next five periods to tackle the debt.
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
Lummis has analyzed the situation and has claimed to reduce 50% of the US national debt by 2045 if they bought 5% of the Bitcoin supply.
Final Thoughts
While Robert Kiyosaki’s forecast Bitcoin crash concerns the users, many believe that the strategic Bitcoin Reserve is the solution to the US National Debt. Earlier, Trump and Senator Cynthia Lummis spoke of the possibility of a strategic BTC Reserve, but now River exchange has presented a video report revealing how 5% of Bitcoin supply could help in paying off a portion of the debt.
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