Bitcoin Strategic Reserve Can ‘Offset US Debt’: CryptoQuant Founder By U.Today
U.Today – CryptoQuant founder Ki Young Joo says a strategic hoard (BTC) is possible for the U.S. to settle some of its debt, he announced in a post on X, a forum of cryptocurrency analysts and financiers. within the ongoing debate among experts.
A proposal for a strategic Bitcoin reserve
According to Young Ju, the creation of a strategic bitcoin reserve (SBR) to offset some of the U.S. debt is possible. Given that the U.S. debt includes domestic and foreign liabilities, Young Ju suggests that the U.S. could to acquire about 1 million BTC. The strategic accumulation of this volume should last until 2050.
He explains that it could be used to pay off 36% of its domestic debt. This would mean clearing 70% of the total debt of the US. that foreign creditors may not accept bitcoin as payment.
Notably, Young Ju relies on Bitcoin’s impressive growth rate over the past 15 years. BTC has seen significant capital inflows and has recently seen its market capitalization surpass $2 trillion.
Young Ju suggests that if the US government designates Bitcoin as a strategic asset like gold, it could positively affect its status. Notably, Bitcoin could gain equal status and official credibility as a store of value to gold.
Challenges of WBR implementation
Although the CryptoQuant founder’s thesis seems feasible, he foresees some significant challenges: Bitcoin needs to gain the market recognition that gold boasts. Only then can its viability as a reserve asset be guaranteed.
Also, given its susceptibility to speculative pumping, Bitcoin’s volatility can make it unattractive to creditors.
Despite these obstacles, the analyst believes that if the U.S. government creates a strategic reserve for Bitcoin, it will signal its confidence in the long-term potential of the asset.
Meanwhile, according to an earlier report by U.Today, Minneapolis Federal Reserve Bank President Neel Kashkari believes bitcoin has “few practical uses.” However, MicroStrategy’s Michael Saylor takes a different view.
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