U.Today – Ki Young Ju, founder of CryptoQuant, says it is possible for the United States to strategically accumulate (BTC) to address a portion of its debt. He said this in a post on X as part of the ongoing debate between cryptocurrency analysts and financial experts.
Bitcoin Strategic Reserve Proposal
According to Young Ju, it is feasible to create a Strategic Bitcoin Reserve (SBR) to offset some of the US debt. Since US debt comprises domestic and foreign liabilities, Young Ju proposes that the United States could acquire around 1 million BTC. The strategic buildup of this volume should span from now until 2050.
It explains that this could be used to offset 36% of its internal debt. This would translate into liquidating 70% of the total debt of the United States. Young Ju's plan mainly focuses on liquidating domestic creditors. You may assume that foreign creditors will not accept Bitcoin as payment.
In particular, Young Ju has relied on Bitcoin's impressive growth rate over the past 15 years. BTC has seen significant capital inflows and has recently seen its market capitalization soar above $2 trillion.
Young Ju suggests that if the US government designates Bitcoin as a strategic asset like gold, it could positively affect its status. In particular, Bitcoin could gain the same official status and credibility as a store of value as gold.
Challenges for SBR implementation
Although the CryptoQuant founder's thesis seems feasible, he foresees some important challenges. Bitcoin must gain market acceptance and achieve the global trust that gold boasts. Only in this way can its viability as a reserve asset be guaranteed.
Additionally, given its susceptibility to speculative pumping, Bitcoin's volatility could prove a challenge. This could make it unattractive to creditors.
Despite these obstacles, the analyst believes that if the US government establishes a Bitcoin Strategic Reserve, it will indicate its confidence in the long-term potential of the asset. Ultimately, this could encourage greater market acceptance and push BTC to play a more active role in global finance.
Meanwhile, according to a previous U.Today report, Federal Reserve Bank of Minneapolis President Neel Kashkari believes Bitcoin has “little” practical use. However, MicroStrategy's Michael Saylor has a contrary opinion.
This article was originally published on U.Today.
