Analyst: Bitcoin reserves will not cover US national debt

Avik Roy, president of the nonprofit research center Foundation for Research on Equal Opportunity, expressed doubts about whether a strategic reserve in bitcoins could help the United States overcome its debt crisis. This is reported by Cointelegraph.

During the North American Blockchain Summit 2024 in Dallas, Roy stated that the plan proposed by Wyoming Senator Cynthia Lummis would not help cover America's national debt, which has reached $35 trillion. Previously, the politician suggested that U.S. authorities purchase bitcoins through the conversion of U.S. Treasury gold certificates, gradually increasing the reserve to 1 million coins. It is assumed that these bitcoins would be held for 20 years.

"Cynthia Lummis overestimates the capabilities of bitcoin. A scenario in which the United States purchases a massive amount of bitcoins may be beneficial, but it will not cover the national debt of $35.46 trillion, which has been growing exponentially since the 1980s," the analyst said.

Roy added that even a reserve in bitcoins would not help the United States, and authorities would still need to implement budget reforms to pull the country out of federal budget deficit.

Earlier, Robert F. Kennedy Jr., the nephew of former U.S. President Kennedy, stated that bitcoin is the best remedy against the declining status of the dollar as the world's reserve currency and could be a salvation from the growing national debt of the United States.