VanEck predicts the U.S. could cut its national debt by 36% after just about twenty years if they adopt Bitcoin as a strategic reserve. If Bitcoin appreciates 25% yearly, it could reduce debt by over $42 trillion. The firm also predicts this crypto becoming 18% of global assets, challenging the U.S. dollar, and pushing for policy changes to make this happen.
VanEck, a top asset management firm, has thrown out a wild prediction about Bitcoin. They believe it could be the key to slashing the U.S. national debt. According to them if Bitcoin keeps growing at a 25% annual rate while U.S. debt goes up, Bitcoin could help cut the national debt by about $42 trillion in just a few decades. In addition to it, by the time this happens, Bitcoin could be worth $42 million per coin, making it a global powerhouse in finance.
The firm also believes that Bitcoin could represent a huge chunk—18%—of the world’s financial assets in the future, especially with this global wealth growing ever so fast. This would make Bitcoin a legit contender to challenge the U.S. dollar, offering an alternative for countries that are under U.S. sanctions.
Mathew Sigel, VanEck’s head of research, sees Bitcoin totally changing global finance. He imagines it becoming a major currency for international trade, making it easier for countries to operate without relying on the dollar. To get this going, VanEck suggests that the U.S. stop selling off Bitcoin from its reserves and start using its Exchange Stabilization Fund to buy Bitcoin. While some experts are skeptical, including economist Peter Schiff, who proposes a new U.S. digital currency, Bitcoin’s future as a global currency is definitely being taken seriously.
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