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Is Bitcoin Reserve The Solution To US National Debt?

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3 months ago

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The United States of America is among the most developed countries in the world, with huge troops and resources. It has been the topic of discussion for its vast growth, multi-culture, and advanced technology. But now, as the presidential election is near, the attention is on candidates like Trump and their promises for the economy and crypto industry development. This also questions the increasing load of the US national debt, which the country has no possible way to pay. Interestingly, the Bitcoin Reserve has become one potential option to battle this year’s long debt.

Reports Reveal Bitcoin Reserve Could Pay Off US National Debt

As per the U.S. Treasury Fiscal Data, the country has $35.14 trillion in federal debt and is growing more with almost no perfect solution. Many analysts and industry professionals believe Bitcoin could be one way to deal with it.

River, a US-based Bitcoin exchange, has assembled new reports revealing how managing a BTC reserve could help with the US national debt. Additionally, ex-president Trump announced Bitcoin strategic reserve in a discussion with the CEO of Bitcoin Magazine.

As per the River report, if the country could hold 5% of the total supply of Bitcoin, the most popular cryptocurrency, it could pay off a major load of its debt. River has explained how holding an asset that grows higher than printing money could tackle the US debt. As Bitcoin has been growing more than 60% every year for the last ten years, it is a popular candidate for high-return investment.

What would it mean for the United States🇺🇸 to have a Strategic #Bitcoin Reserve like @SenLummis proposed?

How would this impact the financial position of the country? Could it help solve the debt crisis?

We break it down in simple terms in this video 👇 pic.twitter.com/3ePdwTzxC8

— River (@River) August 14, 2024

El Salvador, a country in Central America, has already opened a strategic Bitcoin Reserve, holding 5800 ($340 Million). This investment has turned profitable for the country as they have already made a 38% profit ($50 Million). And if the United States of America did the same, the same profit could contribute towards the national debt.

At the of writing, the BTC price is closer to the $59K mark with a market cap of $1,155,049,577,387. But it has risen to as high as $73,750.07 a few months ago. This was the best performance of this cryptocurrency since its launch.  With this, BTC is now eyed by major investors, and the US government could be one of those.

The river report also revealed that the US already holds 213,246, which is more than any country. So, they already have a great start, and if they could raise it to 5% of the total BTC supply, they could pay a major portion of their debt.

Supporters of The Development of Strategic BTC Reserve

In a different course of time, Trump has already presented the idea of the BTC Reserve. However, he is not the only one to think of this. Cynthia Lummis, a US Senator presented the same at the Bitcoin Conference 2024. She proposed the idea of buying one million Bitcoin (5% of total BTC supply) over the next five periods to tackle the debt.

This is the solution.

This is the answer.

This is our Louisiana Purchase moment!#Bitcoin2024 pic.twitter.com/RNEiLaB16U

— Senator Cynthia Lummis (@SenLummis) July 27, 2024

Lummis has analyzed the situation and has claimed to reduce 50% of the US national debt by 2045 if they bought 5% of the Bitcoin supply.

Final Thoughts

While Robert Kiyosaki’s forecast Bitcoin crash concerns the users, many believe that the strategic Bitcoin Reserve is the solution to the US National Debt. Earlier, Trump and Senator Cynthia Lummis spoke of the possibility of a strategic BTC Reserve, but now River exchange has presented a video report revealing how 5% of Bitcoin supply could help in paying off a portion of the debt.

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Pooja Khardia

With years of love for reading and 5 years of content writing experience, I’m here, working on my favorite writings about cryptocurrency. I’m actively looking for trending topics and informational statistics to curate the best content pieces for crypto enthusiasts. Staying updated with trends and learning the basis and advancements of this field is the best part of the day.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Why Is Cardano Price Poised To Hit ATH Soon?

Published

6 hours ago

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November 17, 2024

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Cardano price has been on the investors’ radar lately, as evidenced by the recent ADA rally. Besides, a flurry of developments around Founder Charles Hoskinson has also sparked optimism in the market over further rallies. Amid this, market experts have predicted a strong rally ahead for the crypto.

So, let’s explore the potential reasons that may help ADA price to continue its gain in the coming days.

Reasons Why Cardano Price Poised To Hit ATH Soon

A flurry of recent market developments hints at potential ATH for Cardano price soon. For context, in a recent X post, Cardano founder Charles Hoskinson lauded the ADA community, citing it as the “best community” and said that it has the best entrepreneurs as well. Besides, he also predicted the Voltaire update to make the ecosystem the “finest government ever assembled by humanity.”

This post reveals the founder’s confidence in the community, which could extend the ongoing rally in ADA price. Additionally, Charles Hoskinson visiting Elon Musk’s SpaceX office has also sparked speculations, especially given the individual’s growing influence in the US political landscape.

Besides, Hoskinson has recently said that he would support the Trump Government in shaping crypto legislation. He aims to help the US administration in crafting clear regulatory frameworks for digital assets, which have faced regulatory pressure over the past few years.

ADA Rallies As US Appeal Soars

The recent comments from Ripple CEO Brad Garlinghouse have also sparked market optimism. In a recent FOX Interview, Garlinghouse said that XRP, ADA, SOL, and other crypto issued by the US companies have noted strong rallies in recent days, surpassing other crypto. He said that the anticipation over pro-crypto policies under the Republican government has fueled the rally, while many anticipate the Trump rally to continue to benefit the crypto.

Besides, a flurry of market pundits predicts that crypto to note a strong rally ahead. For context, prominent crypto market analyst Ali Martinez said that Cardano price is poised to hit $6 in 2025, further fueling anticipation over the ADA rally to its new ATH.

Cardano price chartCardano price chart
Source: Ali Martinez, X

Notably, ADA price has recently soared past the $0.78 mark, marking its highest level since March 2024. Besides, Cardano Futures Open Interest also rose more than 20% over the weekend, CoinGlass data showed, indicating the growing confidence of the investors.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
Rupam’s career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Top 5 Changes Coming to Cryptocurrency Market in 2025

Published

9 hours ago

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November 17, 2024

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With enthusiasm and excitement around the Spot ETF and Donald Trump’s win in the US election, the cryptocurrency market has witnessed quite a boost in the last few days. After a slow 2023, 2024 was anticipated to be the year of bulls, which has come true to some level. In these 11 months, eight months were positive in terms of Bitcoin growth, especially in November.

BTC created an ATH at $93k and is still trading above $9ok. Many altcoins also had similar gains, and many even achieved new ATHs. However, there are only limited days left for this year to end and the beginning of another, creating another level of excitement about what might be coming next for the crypto market.

Better Cryptocurrency Market Regulation

Since the beginning of the year, all the investors have focused on the US election results and how that will impact the cryptocurrency market. Between Donald Trump and Kamala Harris, Trump has more crypto-friendly approaches, promising better crypto regulation. On the other hand, his biggest competitor, Kamala Harris, also acknowledged the industry and promised to work on its development.

However, with Trump calling himself the Bitcoin president, launching a crypto venture, promising to fire Gary Gensler and other promises, the votes went in his favor. Interestingly, Donald Trump’s win became crypto’s win, as the cryptocurrency market turned bullish since the result declaration.

More importantly, Trump is gathering pro-crypto candidates for higher positions, so the anticipation is high for upcoming crypto regulations. Many analysts and crypto leaders have pointed out the need for clear rules and regulations for the industry, which could help the industry instead of restricting it. More importantly, many have urged that this will begin with Gary Gensler’s resignation from the SEC Chair position.

Remember:

Cycles repeat. ✅

There’s more liquidity in the system now than in 2017.

More institutions are involved.

More partnerships exist.

More crypto regulations are taking shape.

And yet, without any of these, XRP still outperformed BTC and ETH in 2017.

Documented. 📝🔑… pic.twitter.com/rONIJRIGhl

— SMQKE (@SMQKEDQG) November 16, 2024

Eventually, with Trump’s inauguration scheduled for January, the formation of a regulatory framework is likely to happen in 2025.

Increased Crypto Adoption

El Salvador and Bhutan governments are in the limelight for their Bitcoin holdings, as they have openly welcomed this crypto to achieve more financial freedom. Per the Arkham data, Bhutan has more than $1 Billion in Bitcoin holdings. More importantly, it is one-third of the country’s gross domestic product, explaining the extent of BTC adoption. Out of this, the Bhutan government sold $33M BTC through Binance when Bitcoin price surged to new ATH and made significant profits on their initial investment.

On the other hand, El Salvador has been buying BTC since 2021 amid their Bitcoin adoption plan. El Salvador now has more than 6000 BTC, worth billions today. With that, many more countries might follow soon, including the US, as the higher-ups are discussing creating a strategic Bitcoin reserve and collecting more than 1 Million Bitcoins over the next few years. In this, Senator Cynthia Lummis is the biggest supporter and has proposed selling Federal Reserve gold to buy BTC.

There are also positive indications that China might lift its crypto ban, especially with Trump planning to strengthen the US with crypto. Meanwhile, other countries like UAE, Saudi Arabia, and others are rumored to buy Bitcoin for their sovereign wealth funds. With that, 2025 will witness many nations strengthening their economy with cryptocurrency, boosting the crypto market.

Introduction of Better Cryptocurrencies

Thousands of new cryptocurrencies enter the market every year with unique functionalities and profit potential. 2024 was the year of meme-themed cryptocurrencies, where many popular memecoins entertained investors with their new gains. With that, the cryptocurrency market is now worth $3.04 Trillion in market capitalization and $191.9B in trading volume. With the constant development of the industry and new token introductions, the crypto market cap is to grow past $4 trillion in 2025.

More Spot ETF Introduction In Cryptocurrency Market

After Bitcoin and Ethereum Spot ETF, the market might witness many other ETF approvals in the upcoming few years. Many firms have already applied for Solana, XRP, and other ETFs soon after the Ethereum ETF’s approval, and more are likely to happen throughout the year. Nate Geraci, CEO of ETF Institute, also talked about the same in a recent tweet, anticipating the several spot crypto ETF filings in November alone.

Prediction…

There will be several spot crypto ETF filings this week.

XRP, SOL, ADA, etc.

Assume multiple issuers were highly prepared for election results.

No downside to getting aggressive now.

— Nate Geraci (@NateGeraci) November 11, 2024

BTC and ETH ETFs gained extreme popularity among investors. Here, the Bitcoin ETF has gained $98.66B in market cap alone, opening the possibility of approval of other popular crypto ETFs. Interestingly, Solana is likely to take the lead, says VanEck.

Cryptocurrency Market Bull Run

2025 is the year for Bull Run, where all the cryptocurrencies will achieve their prime. With Bitcoin halving in April 2024, crypto users are now awaiting this bullish time, which usually comes months after the halving event. With historical trends and the ongoing market’s bullish behavior, analysts have anticipated the Bull run to hit in early or mid-2025, making it the biggest event of the cryptocurrency market. This would entirely change the market, where continuous gains would fill investors’ pockets, cryptos would grow to new highs, and the market economy would grow.

A bullish cryptocurrency market is much more certain than before, especially with the Trump win. With better crypto regulation, increased adoption, and the rising demand of the crypto industry, 2025 is going to be big. However, it is also important to understand that market fluctuations and macroeconomic factors could change the timeline of these crypto events.

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Pooja Khardia

With a deep-seated passion for reading and five years of experience in content writing, Pooja is now focused on crafting trending content about cryptocurrency market.

As a dedicated crypto journalist, Pooja is constantly seeking out trending topics and informative statistics to create compelling pieces for crypto enthusiasts. Staying abreast of the latest trends and advancements in the field is an integral part of her daily routine, fueling a commitment to delivering timely and insightful coverage

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Elon Musk Explains Why Tether Advocate Howard Lutnick Is Best For US Treasury Role

Published

12 hours ago

on

November 16, 2024

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Elon Musk has expressed his support for Howard Lutnick, CEO of Cantor Fitzgerald and Tether advocate, as the leading candidate for the U.S. Treasury Secretary position in Donald Trump’s administration. Musk emphasized that Lutnick is capable of enacting change, contrasting him with Scott Bessent, another contender for the role.

Elon Musk Views Howard Lutnick as a Change-Driven Treasury Pick

In a recent post on his social media platform X, Elon Musk endorsed Howard Lutnick for the role of U.S. Treasury Secretary. Elon Musk stated that Lutnick would bring the change needed to address the country’s financial challenges. He contrasted Lutnick with Scott Bessent, founder of Key Square Group, whom Musk described as a “business-as-usual choice.” 

Musk underscored that the status quo is pushing the United States toward financial instability and called for public input on the decision.

Musk’s endorsement has amplified the debate over the Treasury Secretary pick, with Lutnick’s approach seen as disruptive compared to Bessent’s steady, market-friendly stance. The decision has become a focal point in the president-elect’s transition efforts.

In addition, the Tesla CEO urged the public and policymakers to weigh in on the Treasury Secretary decision. In his post, Elon Musk suggested that feedback would help Donald Trump make an informed choice. He emphasized that Lutnick’s ability to enact meaningful change aligns with the public’s demand for a revamped approach to economic governance.

To encourage more engagement, Musk emphasized, 

“Would be interesting to hear more people weigh in on this for Donald Trump to consider feedback.”

Scott Bessent Vs Howard Lutnick

Howard Lutnick has been participating in the formation of Trump’s policies as a member of the president-elect’s transition team for economic appointments. His support for tariffs and domestic economic strengthening has drawn both praise and criticism.

Responding to Musk’s endorsement of Howard Lutnick, Chris Pavlovski, CEO of Rumble, highlighted Lutnick’s instrumental role in taking Rumble public and standing firm for free speech.

Nevertheless, despite the Tesla CEO endorsements of Howard, Scott Bessent’s odds of being nominated as Treasury Secretary have risen to 87%. This has seen the Bitcoin price surge, with market sentiment tied to Bessent’s pro-crypto stance. BTC recently climbed to a new all-time high amid expectations that Trump’s appointment would bring clearer crypto regulations.

Bessent, a known advocate for Bitcoin and blockchain technologies, has highlighted their potential to democratize financial markets. His nomination could mark a pivotal moment for crypto adoption in the United States. However, his perceived alignment with traditional financial practices contrasts with Howard Lutnick’s disruptive approach, presenting a stark choice for Trump.

Meanwhile, Donald Trump will make his decision on the Treasury Secretary position in the coming days. Both Howard Lutnick and Scott Bessent are considered frontrunners, with lobbying efforts intensifying. 

Lutnick’s role as co-chair of Trump’s transition team and now Elon Musk’s endorsement has boosted his candidacy. The announcement is likely to have far-reaching implications for U.S. economic strategy. 

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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