Can Bitcoin Strategic Reserve Solve the U.S. Debt Crisis? Chairman of a non-profit think tank: It can’t be done!

The president of the non-profit think tank "Foundation for Research on Equal Opportunity", Avik Roy, pointed out that the plan proposed by U.S. Senator Cynthia Lummis to "establish a Bit reserve" is a good idea, but the plan cannot solve the current national debt crisis of up to $35 trillion. Avik Roy stated at the 2024 North American Blockchain Summit held in Texas on November 20: "When Senator Cynthia Lummis from Wyoming talked about Bit reserves helping us eliminate federal debt, this is actually an overestimation of Bit's capabilities." According to a previous report by Zombit, in July, Senator Cynthia Lummis proposed the "Bit Act", suggesting that the U.S. government purchase 1 million Bits (about 5% of the total supply) and hold them for at least 20 years. She also called on the U.S. Treasury to convert a portion of its 8,000 tons of gold reserves (worth about $448 billion) into Bit reserves as part of the strategic reserve. Avik Roy explained that if the U.S. purchases a "large amount" of Bit and its price continues to rise, it may help alleviate the national debt to some extent, but this is not enough to address the $35.46 trillion in massive debt, which has grown exponentially since the 1980s. Avik Roy added: "Bit reserves are a good idea, but they cannot solve the fundamental problem. We still need to carry out budget reform to address the $2 trillion federal deficit each year." However, he further pointed out that although Bit reserves cannot completely solve the debt problem, they may alleviate the pressure on the bond market. "If we can use Bit to support some of the U.S. dollars, at least the bond market can be convinced that the U.S. will not go bankrupt." However, Avik Roy also warned that such an arrangement may lead the U.S. to repeat the history of depleting its gold reserves in the 1970s. According to data from the U.S. Treasury Department, the national debt in the U.S. has grown from $3.81 trillion in 1981 to the current $35.46 trillion, at a compound annual growth rate of 5.3%.