U.Today – CryptoQuant founder Ki Young Ju says the US could strategically accumulate BTC to deal with some of its debt. He said this in a post about X as part of an ongoing discussion between crypto analysts and financial experts.
Strategic Bitcoin Reserve Proposal
According to Young Ju, it is feasible to create a Strategic Bitcoin Reserve (SBR) to offset some of the US debt. Considering that the US debt is made up of domestic and foreign-held debt, Young Ju suggests that the US could acquire around 1 million BTC. This amount of strategic accumulation should continue from now until 2050.
He explained that this could be used to offset 36% of domestic debt holdings. This would clear 70% of the total US debt. Yongju’s plan focuses primarily on a settlement with domestic creditors. Perhaps he assumes that foreign creditors may not accept Bitcoin as payment.
In particular, Youngju has relied on Bitcoin’s impressive growth rate over the past 15 years. BTC has recorded significant capital inflows and its market capitalization has recently skyrocketed to over $2 trillion.
Young Ju suggests that if the US government designates Bitcoin as a strategic asset similar to gold, it could have a positive impact on Bitcoin’s status. In particular, Bitcoin could gain status and official credibility as a store of value on par with gold.
Challenges of introducing SBR
Although the CryptoQuant founders’ thesis looks feasible, it foresees some significant challenges. Bitcoin needs to gain market acceptance and gain the global trust that gold enjoys. Only then can its viability as a reserve asset be guaranteed.
Additionally, Bitcoin’s volatility can be challenging given Bitcoin’s susceptibility to speculative pumps. This could make it less attractive to creditors.
Despite these hurdles, analysts believe that the U.S. government’s creation of a strategic Bitcoin reserve would signal confidence in the asset’s long-term potential. This could ultimately foster widespread market acceptance and allow BTC to take a more active role in global finance.
Meanwhile, according to a previous report by U.Today, Minneapolis Fed President Neel Kashkari believes Bitcoin has “very little” utility. However, MicroStrategy’s Michael Saylor takes the opposite view.
