The post Michael Saylor’s Bold Plan to Cut US National Debt by $16 Trillion with Bitcoin appeared first on Coinpedia Fintech News
What if Bitcoin could help the U.S. cut its huge $33 trillion debt by $16 trillion? Sounds unbelievable, right? But MicroStrategy CEO Michael Saylor thinks it’s possible. He believes that if the U.S. buys one million Bitcoins in the next five years, it could reduce the national debt by more than 45%! This bold idea comes right after former President Donald Trump hinted at plans to have the U.S. hold 200,000 Bitcoins as reserves.
The Power of a Bitcoin Reserve
Saylor’s idea revolves around the concept of the U.S. holding a strategic Bitcoin Reserve. He believes that Bitcoin, often referred to as “digital gold,” could act as a safe haven for the government, much like gold did in the past.
Bitcoin is Manifest Destiny for the United States. My discussion of The Red Wave, MicroStrategy's $42 Billion Plan, the compelling logic of the Strategic #Bitcoin Reserve, and getting ready for the 100K party, with @MorganLBrennan. pic.twitter.com/fvkwRnCzlU
— Michael Saylor
(@saylor) November 14, 2024
According to Saylor, having a substantial amount of Bitcoin could not only protect the U.S. dollar but also provide massive financial returns. If the U.S. were to accumulate one million Bitcoins, Saylor argues that this could result in a $16 trillion gain, reducing the nation’s debt substantially.
Political Backing and Support
Saylor’s vision isn’t just his own, it’s gaining political traction too. Senator Cynthia Lummis, a prominent advocate for Bitcoin, recently introduced a bill calling for the U.S. to buy one million Bitcoins over a five-year period.
She even proposed using part of the Federal Reserve’s gold reserves to fund this massive Bitcoin purchase.
Adding to the momentum, former President Donald Trump has also shown interest in the idea of a Bitcoin Reserve. During the Bitcoin 2024 conference, he voiced support for the U.S. government holding 200,000 Bitcoins as a strategic asset.
Bitcoin: More Than Just a Digital Currency
For Saylor, the idea of Bitcoin as a strategic asset isn’t new. He compares it to past purchases by the U.S. government, such as gold, oil, and grain, which have all contributed to massive financial returns. He believes that Bitcoin has the potential to be just as transformative for the U.S. economy.
Saylor’s “Trump Max” scenario goes even further. He predicts that if the U.S. were to purchase four million Bitcoins, it could generate a staggering $81 trillion in returns.
He argues that this is a more rational approach to strengthening the U.S. economy and ensuring the future prosperity of the nation.
Bitcoin, once seen as a volatile digital asset, could be transformed into a key pillar of national economic policy.
