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Ki Young Joo, founder of Cryptoquant, says it is possible for the United States to strategically accumulate Bitcoin (BTC) to address part of its debt. This was stated in A mail On X as part of the ongoing debate Among cryptocurrency analysts and financial experts.
Proposal for a strategic Bitcoin reserve
According to Young Ju, the creation of a Strategic Bitcoin Reserve (SBR) to offset part of the US debt is possible. Given that US debt includes both domestic and foreign obligations, Young Ju suggests that the US could receive around 1 million bitcoins. A strategic buildup of this size should extend from now until 2050.
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This could then be used to offset 36% of its domestic debt, he explains. This would translate into liquidating 70% of total US debt. Young-ju's plan focuses primarily on settling local creditors. It may be assumed that foreign creditors may not accept Bitcoin as a means of payment.
Notably, Young Joe has built on Bitcoin's impressive growth rate over the past 15 years. BTC has recorded significant capital inflows and recently saw its market capitalization rise above $2 trillion.
Young Joo suggests that if the US government classifies Bitcoin as a strategic asset like gold, this could positively impact its status. Notably, Bitcoin could gain equal status and official credibility as a store of value with gold.
Challenges facing SBR implementation
Although the CryptoQuant founder's thesis seems feasible, he anticipates some big challenges. Bitcoin must gain market acceptance and achieve the global trust that gold boasts. Only then can its continuity as a reserve asset be guaranteed.
Additionally, given its susceptibility to speculative infusion, Bitcoin's volatility can be difficult. This may make it unattractive to creditors.
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Despite these hurdles, the analyst believes that if the US government creates a strategic reserve for Bitcoin, it will signal its confidence in the asset's long-term potential. This could ultimately encourage broader market acceptance and push BTC into a more active role in global finance.
Meanwhile, according to U.Today previously a reportMinneapolis Federal Reserve Bank President Neel Kashkari believes bitcoin has “little” practical use. but, Michael Saylor of MicroStrategy holds an opposing view.
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