Think Tank Lianchuang: Bitcoin reserves cannot solve the US debt crisis, but can ease tensions in the bond market

Odaily News Avik Roy, president of the nonprofit think tank Foundation for Research on Equal Opportunity, said at the 2024 North American Blockchain Summit in Dallas, Texas that U.S. Senator Cynthia Lummis' plan to build a strategic Bitcoin reserve is not enough to solve the country's debt crisis, which has now swelled to $35 trillion. "When Wyoming Senator Cynthia Lummis talks about how Bitcoin reserves can help us eliminate federal debt, it's an over-hyping of Bitcoin's function," Roy said. He said that the United States' purchase of "huge" appreciating Bitcoin may help, but it can't make up for the $35.46 trillion debt that has grown almost exponentially since the 1980s. "Bitcoin reserves are good, but it doesn't solve the problem. You still have to really make budget reforms to get us out of the $2 trillion federal deficit every year." But he explained that this move could ease tensions in the bond market, "We at least have the ability to back up enough dollars with Bitcoin to make the bond market feel that the United States will not go bankrupt." However, Roy worries that such an arrangement could cause the United States to erode these Bitcoin reserves, just as it eroded gold in the 1970s. (Cointelegraph)