He explains that this could then be utilized to offset 36% of its domestically held debt. This would translate to clearing 70% of the total U.S. debt. Young Ju’s plan focuses primarily on settling domestic creditors. Perhaps he assumes that foreign creditors may not accept Bitcoin as payment.
Notably, Young Ju has relied on Bitcoin’s impressive growth rate over the past 15 years. BTC has recorded significant capital inflows and has recently seen its market capitalization soar above $2 trillion.
Young Ju suggests that if the U.S. government designates Bitcoin as a strategic asset like gold, it could positively impact its status. Notably, Bitcoin could gain equal status and official credibility as a store of value with gold.
Additionally, given its susceptibility to speculative pump, Bitcoin’s volatility could prove challenging. This might make it unappealing to creditors.
Despite these hurdles, the analyst believes that if the U.S. government establishes a Strategic Bitcoin Reserve, it will signal its confidence in the asset’s long-term potential. This could ultimately encourage broader market acceptance and push BTC into a more active role in global finance.
Meanwhile, per an earlier U.Today report, Minneapolis Federal Reserve Bank President Neel Kashkari believes Bitcoin has “little” practical use. However, Michael Saylor of MicroStrategy holds an opposing view.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
