Senator Cynthia Lummis has proposed a radical idea: the US government should buy $20 billion worth of Bitcoin every year until 2030. The goal? To use this massive Bitcoin reserve to eventually pay down a significant portion of the national debt. But is this plan realistic? Let’s dive in.
The Math Doesn’t Quite Add Up
Lummis envisions holding this Bitcoin for 20 years, hoping it will be worth enough to cover half of the national debt (around $18 trillion). To achieve this, Bitcoin’s price would need to skyrocket to an astounding $18 million per coin—a nearly 18,000% increase from current prices! This would give Bitcoin a market cap exceeding $350 trillion, far surpassing the total value of all global currencies. Clearly, this scenario is highly unlikely.
A More Realistic Approach?
A more plausible path involves the government using the Bitcoin reserve to create investment instruments, like Bitcoin-backed bonds or other financial products. Selling these to investors globally could generate revenue and help reduce the debt. This would still massively increase Bitcoin’s role in the US economy and likely weaken the dollar.
Crypto as National Currency? Is it Possible?
Could we see governments abandoning traditional currencies for crypto in the next 20 years? While it sounds far-fetched, it’s becoming increasingly plausible. While a meme coin like Pepe Coin would be a terrible choice, Bitcoin, with its reputation as “digital gold,” or stablecoins, could be viable alternatives.
The Bigger Picture: Mainstream Crypto Adoption
Regardless of whether Lummis’ plan works as intended, the very fact that a US Senator is proposing such a bold crypto initiative is a significant step towards mainstream adoption. This could push Bitcoin to new heights.
Best Wallet: Preparing for the Crypto Revolution
While a $350 trillion Bitcoin market cap is a long shot, even a more conservative estimate (like Coinbase’s prediction of an $18 trillion market cap) still represents massive potential growth. If you’re investing in crypto, you need a secure wallet. Best Wallet is highlighted as a non-custodial hot wallet, offering features like mobile access, support for various cryptocurrencies (including presale tokens), and its own token, $BEST, with benefits for holders.
Final Thoughts
Senator Lummis’ Bitcoin plan might be overly ambitious, but it signals a major shift in how governments view cryptocurrency. Now is a good time to consider your crypto strategy. Remember to always do your own research (DYOR) before investing.
