VanEck Unveils Tool to Explore Bitcoin Reserve’s Role in US Debt Management

Asset manager VanEck has stated that a Strategic Bitcoin Reserve could help mitigate the US’ growing debt, which currently stands at $36 trillion.

To explore the potential effects of this idea, the firm has developed an interactive tool inspired by the BITCOIN Act.

How Will a Strategic Bitcoin Reserve Reduce US Debt?

The BITCOIN Act, introduced by Senator Cynthia Lummis, outlines a plan for the US government to acquire up to 1 million Bitcoins (BTC) over five years, purchasing no more than 200,000 BTC per year.

These assets would be held in a dedicated reserve for at least 20 years. Lummis believes such a reserve could substantially reduce the nation’s debt.

Notably, VanEck’s new calculator lets users know the impact of such a reserve. The tool allows the simulation of a variety of hypothetical scenarios by adjusting different variables. 

These include the debt and BTC’s growth rates, the average purchase price of Bitcoin, and the total quantity of Bitcoin held in reserve. Meanwhile, VanEck has also included their own “optimistic projection.”

“If the US government follows the BITCOIN Act’s proposed path – accumulating 1 million BTC by 2029 – our analysis suggests this reserve could offset around $21 trillion of national debt by 2049. That would amount to 18% of total US debt at that time,” VanEck noted.

The analysis is based on assumptions regarding the future growth rates of both US debt and Bitcoin. VanEck has supposed a 5% annual growth rate for the national debt. This would see it rise from $36 trillion in 2025 to around $116 trillion by 2049. 

Similarly, Bitcoin is presumed to appreciate at a compounded rate of 25% per year. Its acquisition price is predicted to start at $100,000 per Bitcoin in 2025. Thus, by 2049, the price could potentially be $21 million per Bitcoin.

While the federal government considers the potential of a Strategic Bitcoin Reserve, interest is also rising at the state level. At least 20 US states have introduced bills to create digital asset reserves. 

According to Matthew Sigel, Head of Digital Assets Research at VanEck, state-level bills could collectively drive as much as $23 billion in Bitcoin purchases. 

President Trump’s Crypto Promise

VanEck’s move comes as Bitcoin is receiving increasing political support. US President Donald Trump has reiterated his commitment to positioning the US as a global leader in cryptocurrency. 

Speaking at the Future Investment Initiative Institute summit in Miami, Trump emphasized the economic growth driven by crypto-friendly policies.

“Bitcoin has set multiple all-time record highs because everyone knows that I’m committed to making America the crypto capital,” Trump said.

Since returning to office, Trump has signed an executive order to establish a national “digital asset stockpile.” He has also nominated pro-crypto leaders to head major regulatory bodies. However, whether a Bitcoin reserve will actually be established remains to be seen.