The US elections were one of the most decisive events in the crypto space in 2024. Specifically, Donald Trump's re-election revived bitcoin and the entire crypto market after a dull second and third quarter.
One of the promises made by President-elect Trump in the run-up to the polls was the institution of a strategic bitcoin reserve. Unsurprisingly, most of the recent cryptocurrency conversations have revolved around the btc reserve and its potential impact on the US economy and the crypto landscape.
Why should the United States establish strategic bitcoin reserves?
CryptoQuant CEO and Founder Ki Young Ju is the latest to weigh in on the issue of bitcoin strategic reserves in the United States. In a post on Platform x, crypto expert <a target="_blank" href="https://x.com/ki_young_ju/status/1870386251599323420″ target=”_blank” rel=”noopener nofollow”>saying that using the world's largest cryptocurrency to offset US debt is a feasible approach.
The CEO of CryptoQuant mentioned:
Over the past 15 years, $790 billion in realized capital inflows have driven bitcoin's market capitalization to $2 trillion. This year alone, $352 billion in inflows have added $1 trillion to its market capitalization.
Young Ju then revealed that the United States could cut its domestic debt (70% of the total) by 36% if the government acquires 1 million btc by 2050 and designates the leading cryptocurrency as a strategic asset. “While the remaining 30% of debt held by foreign entities may resist this approach, the plan is not based on paying off all debt with bitcoin, making the strategy practical,” the CryptoQuant founder added.
<img decoding="async" class="aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/12/How-Bitcoin-Strategic-Reserves-Could-Help-Offset-US-Debt-CEO.jpeg" alt="bitcoin” width=”1200″ height=”675″/>
A chart showing btc's realized cap | Source: Ki_young_ju/x
Young Ju believes that using a “pumpable asset” like btc to offset dollar-denominated debt could face the challenge of creditor acceptance. However, the institution of a strategic bitcoin reserve by the United States could serve as a “symbolic first step” in granting global and domestic legitimacy to the flagship cryptocurrency, as seen with assets such as gold.
Posting on “However, if governments continue to accumulate bitcoin until 2050 and its price continues to rise, I doubt they will truly abandon it,” Young Ju concluded.
btc price at a glance
At the time of writing, btc price is around $97,000, reflecting a 0.4% decline in the last 24 hours. According to data from CoinGecko, the main cryptocurrency is down 3.6% in the last seven days.
The price of btc on the daily timeframe | Source: BTCUSDT chart on x/B3xRvwNI/" target="_blank" rel="noopener nofollow">TradingView
Featured image from iStock, chart from TradingView
