Bitcoin Reserve With 1 Million BTC Could Offset $21 Trillion National Debt By 2049, Expert Says

BY Benzinga | ECONOMIC | 02/21/25 01:22 PM EST

VanEck's Head of Digital Assets Research, Matthew Sigel, has laid out a vision for how the U.S. Treasury could use Bitcoin (CRYPTO: BTC) to strengthen its balance sheet.

What Happened: In a post on X on Friday, Sigel highlighted VanEck's estimates that if Bitcoin appreciates at 25% annually?rising from $100,000 today to $21 million per BTC by 2049?the reserve could offset 18% of the projected U.S. debt.

This assumes debt grows at 5% annually, reaching $116 trillion by 2049 (up from $36 trillion in 2025).

While this theory is highly optimistic, it underscores Bitcoin's potential as a sovereign reserve asset and a hedge against inflationary debt expansion.

The BITCOIN Act introduced by Wyoming Senator Cynthia Lummis proposes the U.S. accumulate 1 million BTC over five years and hold it for at least 20 years as a strategic Bitcoin reserve.

Also Read: Bitcoin, Ethereum Face Downside Risk As Institutional Demand Fades, JPMorgan Says

Why It Matters: Polymarket now prices in a 44% chance of a U.S. National Bitcoin Reserve in 2025, up from 39% earlier this month.

Kalshi data sees a 59% probability that Trump would establish a Bitcoin Reserve if elected, up from 53.8% on Feb. 12.

Arkansas is set to become the first state to establish a Bitcoin reserve, with amendments expected by March 5. Meanwhile, Texas is preparing to debate the proposal in its Senate.

What's Next: Momentum is building for Bitcoin as a national strategic asset, with state-level initiatives paving the way for potential federal adoption.

While still speculative, institutional support and policy discussions could shape Bitcoin's future as a financial pillar in the U.S. economy.

Read Next:

  • XRP To Be Part Of The Crypto Reserve After Donald Trump’s Social Media Post? Not So Fast, Polymarket Traders Say

Image: Shutterstock

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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