Reserving BTC to repay US debt, think tank experts: Overthinking

"BTC Reserve" has always been a hot topic of discussion. Previously, Republican Senator Cynthia Lummis proposed a plan to establish a "BTC Reserve", and Michael Saylor, the founder of MicroStrategy, also launched the "Sweeping BTC Plan", actively urging the US government, financial institutions, and technology giants to quickly purchase BTC as reserves, hoping that the government can use BTC to solve America's massive debt problem. However, recently, some think tank experts believe that this idea is too optimistic, even a bit "overhyped".

National debt has exceeded 35 trillion US dollars, and BTC reserves cannot fill the gap

The current US national debt is as high as $35.46 trillion, almost exponentially growing since the 1980s with an annual growth rate of about 5.3%. The "BTC Reserve Act" proposed by Lummis suggests that the US government purchase 1 million BTC, which is approximately 5% of the global supply, and hold it for at least 20 years. Lummis even suggests that the US government convert a portion of the Treasury's $448 billion worth of gold into BTC reserves.

However, experts from think tanks at the recent North American Blockchain Summit held in Texas bluntly stated that the idea of a "BTC reserve" is unrealistic. The experts said that if the United States were to buy a large amount of BTC and BTC were to appreciate significantly, it could indeed reduce the pressure of national debt, but this alone would not solve the fundamental problem. They emphasized that what the United States really needs to solve is the "federal deficit of up to $2 trillion per year", and that "relying solely on a BTC reserve" is not enough to solve this problem.

Think tank experts discussed BTC reserve issues at the 'North American Blockchain Summit'. BTC may stabilize the bond market, but may also repeat mistakes.

Experts say that although BTC reserves cannot eliminate national debt, they may stabilize the bond market to some extent. They also suggest that if the United States could use BTC to support the US dollar, it would significantly increase the creditworthiness of the bond market towards the United States and prevent people from thinking that the US is on the verge of bankruptcy. However, experts are also concerned that BTC reserves may repeat the same mistakes as the US did in the 1970s when it depleted its gold reserves. They warn that even with BTC reserves, the US may face the same problem if it does not undergo 'budget reform' as it did back then, just like running out of gold reserves.

Trump also supports BTC reserves, and policy implementation still needs to be observed

In July of this year, the 'BTC Bill' proposed by encryption-friendly Senator Lummis also received support from the incoming Trump. Trump also promised to establish a 'national BTC reserve' once in office. Many people believe it is a new decision to improve the US debt problem.

Although the BTC reserve plan sounds attractive, experts believe that the real solution is "budget reform". The future direction of how Trump effectively balances the country's financial problems and implements policies still needs to be observed.

(MicroStrategy: raising $4.2 billion to continue buying BTC, supporting the strategic reserve of BTC in the United States)

This article Reserving BTC to repay US debt, think tank expert: Overthinking first appeared in Chain News ABMedia.