Author: Brayden Lindrea, CoinTelegraph; Compiler: Deng Tong, Golden Finance

Asset management company VanEck stated that if the United States establishes a reserve of 1 million Bitcoins in accordance with the bill proposed by Senator Cynthia Lummis, then The United States can reduce its national debt by 35% in the next 24 years.

VanEck estimates that Bitcoin will grow at a compound annual growth rate (CAGR) of 25% to $42.3 million by 2049, while U.S. Treasuries will grow at a CAGR of 5% from early 2025 increased from US$37 trillion to US$119.3 trillion.

Matthew Sigel, director of digital asset research at VanEck, and investment analyst Nathan Frankovitz said in a report on December 20: “By 2049, this reserve may account for 35% of the national debt, offsetting approximately $42 trillion in debt ”

Estimated 2025 to 2049. In 2020, the U.S. national debt will increase as Bitcoin reserves grow. Source: VanEck

The “optimistic” forecast sees Bitcoin’s 25% CAGR starting from the $200,000 price point in 2025. Bitcoin is currently trading at $95,360 and would need to more than double to reach the starting point noted by VanEck.

Bitcoin's rise in price to $42.3 million means it accounts for about 18% of global financial assets - far higher than the roughly 0.22% it accounts for in today's $900 trillion market.

The compound annual growth rate of U.S. Treasury debt and Bitcoin reserve holdings, as well as the value of Bitcoin, is estimated at 25%. Source: VanEck

Donald Trump’s new idea of ​​a Bitcoin reserve has pushed Bitcoin prices to over six figures, but Senator Loomis’ bill has still not been approved by the Senate or House review.

Strike founder and CEO Jack Mallers claimed earlier this month that Trump may issue an executive order on his first day in office to designate Bitcoin as a reserve asset.

Under the Lummis Act, the United States can repurpose 198,100 Bitcoins it holds due to asset seizures, while the remaining 801,900 Bitcoins can be financed through emergency support functions, selling part of its $455 billion gold reserves to Exchange for Bitcoin, or both-- all without printing money and taxpayer dollars, VanEck points out.

Bitcoin adoption at the U.S. state, institutional and corporate levels will also boost CAGR estimates for issuers of Bitcoin and Ethereum exchange-traded funds, Sigel and Frankovitz said.

Sigel explained in a December 21 Land was used as currency.

They pointed out: “For those who wish to avoid the parabolic growth of U.S. dollar sanctions, Bitcoin is likely to be widely used as a settlement currency for global trade.”