U. Today – Ki Young Ju, the founder of CryptoQuant, says that it is possible that the United States will collect (BTC) to cover part of its debt. He explained this in an X post as part of an ongoing discussion between cryptocurrency analysts and financial experts.
Bitcoin storage strategy proposal
According to Young Ju, establishing a Strategic Bitcoin Reserve (SBR) to pay part of the US debt is possible. Because the US debt includes both internal and external debt, Young Ju suggests that the US can get about 1 million BTC. The planned collection of this volume should be between now and 2050.
He explains that this can be used to pay off 36% of their home loan. This would mean wiping out 70% of the total debt in the US. Young Ju's plan is mainly focused on paying off local creditors. You probably think that foreign lenders won't accept Bitcoin as payment.
Clearly, Young Ju is confident in Bitcoin's growth rate over the past 15 years. BTC has recorded capital inflows and recently saw its market capitalization rise above $2 billion.
Young Ju suggests that if the US government designates Bitcoin as a strategic asset like gold, it could affect its status. Clearly, Bitcoin can gain equal status and legal credibility as a store of value and gold.
Challenges in implementing SBR
Although the CryptoQuant founder's thesis seems plausible, he sees some significant challenges. Bitcoin needs to gain market acceptance and achieve the global trust that gold boasts. Only then will its effectiveness as a reserve asset be assured.
Additionally, given its vulnerability to a speculative pump, Bitcoin's volatility may prove challenging. This can make it unattractive to lenders.
Despite these obstacles, the analyst believes that if the US government establishes a Strategic Bitcoin Reserve, it will show its confidence in the long-term asset. This could encourage wider market acceptance and push BTC into an active role in global finance.
Meanwhile, according to a previous report by U.Today, the President of the Federal Reserve Bank of Minneapolis, Neel Kashkari, believes that Bitcoin can use “less” efficiency. However, Michael Saylor of MicroStrategy has the opposite view.