Co-founder of think tank warns Bitcoin reserve won’t resolve US debt crisis

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skeptical that this strategy would be foolproof, as history has shown that the US has eroded reserves in the past, such as with gold in the 1970s.

Since 1981, the US national debt has been on the rise at a rate of 5.3% annually, skyrocketing from $3.81 trillion to a staggering $35.46 trillion, according to US Treasury Fiscal Data. This is a trend that Avik Roy believes cannot be simply fixed by setting up a Bitcoin reserve.

Senator Cynthia Lummis proposed the Bitcoin Act earlier this year, suggesting that the US government purchase 1 million BTC, equivalent to about 5% of the total supply, and hold it for a minimum of 20 years. She also recommended converting a portion of the US Treasury’s gold holdings into this proposed Bitcoin reserve.

President-elect Donald Trump, scheduled for inauguration in January, pledged back in July to establish a national Bitcoin stockpile. This move is seen by some as a strategic approach to potentially calm the bond market and provide a sense of security for the US dollar.

While some may see the idea of a Bitcoin reserve as a solution to the country’s debt crisis, Avik Roy maintains that it is not a fix-all remedy. He emphasizes the need for comprehensive budgetary reforms to address the ongoing issue of federal deficits.

In conclusion, while the concept of a Bitcoin reserve may sound promising, it is crucial to acknowledge that it is not a straightforward solution to the mounting US debt. It is important to consider all options and take a comprehensive approach to address the underlying issues contributing to the country’s financial challenges.

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