The United States is one of the most advanced countries in the world, with large military forces and resources. It’s known for its rapid growth, diverse culture, and cutting-edge technology. However, with the presidential election approaching, the focus is now on candidates like Trump and their promises for the economy and the crypto industry. This raises concerns about the growing U.S. national debt, which the country struggles to pay off. Interestingly, Bitcoin reserves have emerged as a possible solution to this long-standing debt.
According to U.S. Treasury Fiscal Data, the country has $35.14 trillion in federal debt, which continues to rise without a clear solution. Many analysts and industry experts think Bitcoin could be one way to address this issue. River, a U.S.-based Bitcoin exchange, has released reports showing how managing a Bitcoin reserve might help with the national debt. Former President Trump also mentioned a Bitcoin strategic reserve during a discussion with the CEO of Bitcoin Magazine.
River’s report suggests that if the U.S. held 5% of the total Bitcoin supply, the most popular cryptocurrency, it could significantly reduce its debt. The report explains that holding an asset that appreciates faster than the money supply could help tackle the U.S. debt. With Bitcoin growing over 60% annually for the last decade, it stands out as a high-return investment option.
El Salvador, a Central American country, has already established a strategic Bitcoin reserve, holding 5,800 BTC (worth $340 million). This investment has proven profitable for the country, yielding a 38% profit ($50 million). If the United States did something similar, the profits could help reduce the national debt.
At the time of writing, Bitcoin’s price is near the $59,000 mark, with a market cap of $1.15 trillion. It reached as high as $73,750.07 a few months ago, marking its best performance since its launch. This surge has caught the attention of major investors, and the U.S. government could be among them.
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Supporters of a Strategic BTC Reserve
The River report also noted that the U.S. already holds 213,246 BTC, more than any other country. This gives the U.S. a strong starting point, and if they could increase their holdings to 5% of the total Bitcoin supply, they could pay off a significant portion of the national debt.
Former President Trump has previously suggested the idea of a Bitcoin reserve, but he’s not alone in this thinking. U.S. Senator Cynthia Lummis proposed a similar idea at the 2024 Bitcoin Conference. She suggested buying one million Bitcoin (5% of the total BTC supply) over the next five years to help manage the debt. Lummis has assessed the situation and claimed that the U.S. could reduce 50% of its national debt by 2045 if it buys 5% of the Bitcoin supply.
While Robert Kiyosaki’s warnings of a Bitcoin crash worry some users, many believe that a strategic Bitcoin reserve could be the answer to the U.S. national debt. Previously, both Trump and Senator Cynthia Lummis discussed the possibility of a Bitcoin reserve, but now River exchange has released a video report showing how holding 5% of the Bitcoin supply could help pay off a portion of the debt.
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