The math is pretty wild. If the government starts buying Bitcoin at around $100,000 in 2025, and it appreciates by 25% annually (big if, but stay with me), each Bitcoin could be worth a staggering $21 million by 2049. That would make a 1 million Bitcoin reserve worth approximately $21 trillion. Not chump change. It could potentially cover 18% of the national debt, according to VanEck models.
This isn’t just throwing money at digital magic internet coins. The plan involves converting Federal Reserve gold certificates into Bitcoin and establishing a strategic reserve with a minimum 20-year hold period. Uncle Sam playing the long game, for once. Using stablecoin technology could help manage volatility during the transition period.
Of course, pulling this off would require completely overhauling our regulatory framework. The SEC and CFTC would need to sort out their turf wars. Property rights, custody solutions, ownership protection—all need clear definitions. Because let’s face it, nobody wants the government to lose the keys to a $21 trillion wallet.
The Federal Reserve and Treasury would share responsibility for managing this massive crypto piggy bank. They’d need to implement decentralized vault systems while maintaining transparency. No small task.
Critics worry this could undermine confidence in the dollar. After all, if the government is hedging with Bitcoin, shouldn’t everyone? And Congress isn’t exactly known for embracing radical financial innovations. Rather than accumulating Bitcoin reserves, many experts suggest the focus should be on establishing robust infrastructure for the cryptocurrency ecosystem.
Still, the potential upside is enormous. America could position itself as the leader in the global crypto economy, driving innovation and exporting regulatory frameworks worldwide. As Senator Cynthia Lummis has acknowledged, addressing our nation’s nearly $36 trillion debt requires innovative approaches beyond conventional solutions. Bold? Absolutely. Crazy? Maybe. But with $116 trillion of debt looming, conventional solutions aren’t cutting it anymore.
