- The US national debt is insurmountable.
- Senator Lummis pushes the Bitcoin Act 2024 as a start.
- The Department of Government Efficiency unveils its reform plan.
Senator Cynthia Lummis is doubling down on her push for the Bitcoin Act 2024, a bold proposal to establish a US Bitcoin Reserve by acquiring one million BTC to address the nation’s growing debt crisis.
Donald Trump’s endorsement of the proposal at Bitcoin 2024 in Nashville, combined with Bitcoin’s meteoric rise nearing an unprecedented $100K, has infused fresh momentum into the initiative.
Lummis Pushes For the Bitcoin Act 2024
With Trump’s pro-crypto administration set to take office next year, Senator Lummis is intensifying her efforts to pass the Bitcoin Act 2024. Speaking to Fox News, she emphasized the value of having Bitcoin as a long-term store of value alongside traditional reserves like gold and oil.
Sponsored
The proposal seeks to tackle the US. national debt by acquiring 200,000 BTC annually and building a reserve of 1 million coins. Lummis plans to hold the reserve for 20 years, after which the Bitcoin would be liquidated to pay down the debt.
Lummis assured taxpayers that the acquisition wouldn’t rely on new funding, instead proposing it be financed by reallocating existing government resources. She projected that the reserve could pay down half of the national debt upon maturity in 2044.
Out-of-Control Government Spending
The US national debt has reached a staggering $36 trillion , with government overspending adding $1 trillion every 100 days , according to the Committee for a Responsible Federal Budget.
At this rate of spending, the national debt could balloon to $96 trillion by 2044, raising alarms over mounting interest payments and eroding confidence in the US. economy.
Recognizing the severity of the issue, Trump has assigned the Department of Government Efficiency (DOGE), headed by Elon Musk and Vivek Ramaswamy, to reduce government spending by eliminating fraud and inefficiencies.
While the duo has yet to present a definitive roadmap, a recent op-ed in the Wall Street Journal outlined their general focus on administrative reductions, cost savings, and regulatory rollbacks.
Unrealistic Plan
While DOGE’s plan remains undefined, Musk has previously suggested potential savings of $2 trillion . Analysts consider this target achievable over a decade but warned that reaching it within a year could destabilize the government’s essential functions.
Using rough calculations, with a projected $96 trillion deficit by 2044 and DOGE saving $2 trillion, Bitcoin would need to be priced at $47 million per coin to reduce the national debt by half.
Even assuming the US government starts living within its means and the debt stays frozen at $36 trillion, accounting for DOGE savings, Bitcoin would still need to be priced at $17 million per coin to pay off half the national debt.
This underscores the enormity of the challenge and the limitations of even the most ambitious solutions.
On the Flipside
- A US Bitcoin reserve is expected to spark a global trend towards national BTC reserves.
- The US is estimated to hold 8,100 tons of gold, valued at around $700 billion at current prices.
- Ramaswamy is targeting a 75% reduction in the federal workforce.
Why This Matters
While Lummis’s plan strikes a chord with Bitcoin enthusiasts, the proposed reserve is no silver bullet for solving the complex economic challenges of years of unchecked government spending.
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