Bitcoin Could Offset $16 Trillion of U.S Debt
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Michael Saylor claims that creating a one million Bitcoin Reserve could help reduce the US national debt by up to 45%.
MicroStrategy Chairman Michael Saylor and Wyoming Senator Cynthia Lummis are working on a Bitcoin reserve strategy for the United States. In a recent interview on CNBC, Saylor said that accumulating one million BTC over the next five years could reduce the US national debt by a staggering $16 trillion, a cut of up to 45% of the current debt.
Bitcoin Reserves to Reduce US National Debt
In the interview, Michael Saylor also touched on the Red Wave in the US election and the impact of Donald Trump’s victory on the cryptocurrency market. He also shared MicroStrategy’s plan to raise $42 billion to buy more Bitcoin.
Most notably, Saylor believes that the United States will likely soon have a concrete plan to build a national Bitcoin strategic reserve. Earlier this year, President Donald Trump announced plans for the U.S. government to hold 200,000 Bitcoins in its reserves at the Bitcoin 2024 conference in Nashville.
Michael Saylor Wants to Build a Strategic Bitcoin Reserve in the US
Michael Saylor Wants to Build a Strategic Bitcoin Reserve in the US
Soon after, Sen. Cynthia Lummis (R-Wyo.) introduced a bill proposing to increase the nation’s digital asset reserves. She also shared plans to accumulate one million Bitcoins within five years. In recent comments on Thursday, she also proposed selling some of the Fed’s gold reserves to buy one million BTC.
If Sen. Lummis’ bill passes as currently written, the U.S. could reap as much as $16 trillion in benefits from buying one million Bitcoins, according to Saylor. In an interview, the MicroStrategy executive chairman said:
“The best way to protect the dollar is to make sure that debt is eliminated and wealth is created. The next way to protect the dollar is to make sure that if someone considers an asset other than a Treasury bond, you own it.” That asset is Bitcoin, he added.
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“You are a nation, and this is what nations should do… Bitcoin is the manifest destiny of the United States. I believe the Trump administration understands this, and Senator Lummis understands this… so that’s what’s going to happen.”
Saylor also outlined a “Trump Max” scenario, in which the United States buys four million Bitcoins, a move he said could generate as much as $81 trillion in profits. This “Trump Max” strategy, Saylor said, is “the most logical approach.”