Asset manager VanEck thinks a Strategic Bitcoin Reserve would work out very well for the United States. They even predict that the US national debt could fall by 35% over the next 24 years if it purchases a reserve of 1 million Bitcoin. That would be in line with the Bitcoin reserve bill that Senator Cynthia Lummis proposed.
Bitcoin up 25% per year
VanEck has huge expectations for Bitcoin for the year 2024. They see the digital currency increasing in value by 25% per year, which would yield a Bitcoin price of $42.4 million for the year 2049.
While the US national debt is growing at 5% per year, and would be worth $119.3 trillion in 2049.
“The Bitcoin reserve could become worth an estimated 35% of the national debt, wiping out $42 trillion of debt,” said Matthew Sigel, head of research at VanEck.
VanEck’s scenario assumes a Bitcoin price of $200,000 in 2025. From that point on, the price should rise by 25% per year, before reaching that incredible price of $42.3 million in 2049. .
18% of all global assets
If Bitcoin rises to that price of $42.3 million, the digital currency would represent 18% of all assets on earth. That would represent a massive increase from the current 0.22% it represents in the $900 trillion global market.
In any case, Donald Trump promised in July 2024 not to sell the Bitcoin that America currently owns. And he went on to call that the “core” of the US Bitcoin supply.
Based on that word, there is a chance that more Bitcoin will be added in the future. But whether they will really purchase Bitcoin under Trump in the coming months remains to be seen.
According to Sigel, there is a good chance that Bitcoin will function as a settlement currency for the world in the future. For example, by countries that trust the United States less. Think of Russia, Brazil, China, India and more such countries.
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Source: https://newsbit.nl/vaneck-bitcoin-reserve-kan-staatsschuld-vs-met-35-verlagen-in-2049/
