"Bitcoin Reserve" has always been a hot topic of discussion. Previously, U.S. Republican Senator Cynthia Lummis proposed a plan to establish a "Bitcoin Reserve", and MicroStrategy founder Michael Saylor also launched a "Bitcoin Acquisition Program", actively calling on the U.S. government and financial and technology giants to quickly purchase BTC to build reserves, and also hoping that the government will use BTC to solve the huge debt problem in the U.S. However, recent think tank experts believe that this idea is too optimistic, and even a bit "oversold".
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ToggleNational debt exceeds $35 trillion, BTC reserve also cannot fill the gap
The U.S. national debt currently stands at $35.46 trillion, growing exponentially since the 1980s, with an annual growth rate of about 5.3%. Lummis' previously proposed "Bitcoin Reserve Act" suggests that the U.S. government purchase 1 million BTC, which is about 5% of the global supply, and hold it for at least 20 years. Lummis even suggested that the U.S. government convert part of the $448 billion worth of gold in the Treasury into a BTC reserve.
However, a think tank expert at the recent "North American Blockchain Summit" held in Texas bluntly stated that the "BTC reserve" is simply unrealistic. The expert said that if the U.S. buys a large amount of BTC and BTC appreciates significantly, it could indeed reduce the debt pressure, but this is not enough to solve the fundamental problem. He emphasized that what the U.S. really needs to solve is the "federal deficit of up to $2 trillion per year", and "not just a one-time BTC reserve" can solve the problem.
BTC may be able to stabilize the bond market, but may repeat the past
The expert said that although the BTC reserve cannot eliminate the national debt, it may be able to stabilize the bond market to a certain extent. He further stated that if the U.S. can use BTC to support the U.S. dollar, it can at least greatly increase the credibility of the bond market for the U.S., so that it is not seen as on the verge of bankruptcy. However, the expert is also concerned that the BTC reserve may repeat the 1970s when the U.S. depleted its gold reserves, and warned that if the U.S. does not carry out "budget reform", even with a BTC reserve, it may face the same problem as back then.
Trump also supports BTC reserve, policy implementation still needs observation
In July this year, Lummis' "Bitcoin Bill", which is friendly to cryptocurrencies, also gained the support of the incoming Trump. Trump also promised that once in office, he will establish a "national-level BTC reserve". Many outside observers also believe that it is a new policy to improve the U.S. debt problem.
Although the BTC reserve plan sounds quite attractive, experts believe that "budget reform" is still the real solution to the problem. How Trump will effectively balance the country's financial problems in the future, and the specific direction of policy implementation, still need to be observed.
