- Ki Young Ju proposes a Strategic Bitcoin Reserve to offset 36% of the U.S. domestic debt through BTC by 2050.
- He suggests acquiring 1 million Bitcoin, emphasizing its potential as a strategic asset equal to gold.
- Challenges include Bitcoin’s volatility and global acceptance as a trusted reserve asset, despite its historical growth trajectory.
Ki Young Ju, founder of CryptoQuant, has proposed an innovative approach for the United States to address its debt burden. In a recent post on X, he suggested the establishment of a Strategic Bitcoin Reserve (SBR). This reserve, he explained, could involve the U.S. accumulating approximately 1 million BTC by 2050 to offset 36% of its domestic debt.
Young Ju’s proposal focuses on using Bitcoin as a tool to tackle the portion of debt held by domestic creditors. According to his analysis, this strategy could clear up to 70% of the total U.S. debt. Notably, his plan relies on Bitcoin’s historical growth trajectory over the past 15 years, during which its market capitalization has soared past $2 trillion.
Bitcoin as a Strategic Asset
Young Ju emphasized the potential of Bitcoin to achieve the same strategic status as gold. He suggested that if the U.S. government recognizes Bitcoin as a reserve asset, it could significantly enhance its legitimacy as a store of value. Moreover, this move could elevate Bitcoin’s credibility in global finance, ensuring its inclusion in the country’s financial strategy.
Additionally, he highlighted the asset’s consistent capital inflows and the growing interest from institutional and retail investors. This strengthens the case for Bitcoin to be part of the U.S. debt management toolkit.
Despite the optimistic outlook, Young Ju acknowledged several challenges in implementing such a reserve. Bitcoin must first gain the level of trust and global acceptance currently enjoyed by gold. Furthermore, its high volatility presents a significant hurdle. He noted that speculative price fluctuations might deter creditors from accepting Bitcoin as a viable payment option.
Additionally, he pointed out that foreign creditors might resist Bitcoin payments, limiting its potential application to domestic debt settlements.
Potential Economic Impact
However, Young Ju believes the establishment of an SBR could signal confidence in Bitcoin’s long-term potential. Consequently, this may encourage wider market adoption and accelerate Bitcoin’s integration into mainstream financial systems. Such a move could further strengthen its position as a global financial asset, fostering broader acceptance.
Meanwhile, opinions on Bitcoin’s role in debt management remain divided. Minneapolis Federal Reserve Bank President Neel Kashkari has expressed skepticism about Bitcoin’s utility. Conversely, MicroStrategy’s Michael Saylor remains a strong advocate for Bitcoin as a transformative financial tool.
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