The US election was one of the most significant events in the crypto space in 2024. In particular, Donald Trump’s re-election revitalized Bitcoin and the cryptocurrency market as a whole after an uninspiring second and third quarter.

One of the promises made by President-elect Trump in the run-up to the election was the institution of a strategic Bitcoin reserve. It’s no surprise that much of the recent cryptocurrency talk has focused on BTC reserves and their potential impact on the US economy and crypto landscape.

Why should the US create a strategic Bitcoin reserve?

CryptoQuant CEO and founder Ki Juvenile Ju is the latest to speak out about Bitcoin’s strategic reserves in the United States. In a post on the X platform, a cryptocurrency expert he said that using the world’s largest cryptocurrency to cover US debt is a viable approach.

CryptoQuant CEO mentioned:

Over the past 15 years, $790 billion in capital inflows have pushed Bitcoin’s market capitalization to $2 trillion. This year alone, $352 billion in inflows added $1 trillion to market capitalization.

Juvenile Ju then revealed that the United States could reduce its national debt (70% of the total) by 36% if the government acquires 1 million BTC by 2050 and designates the major cryptocurrency as a strategic asset. “Although the remaining 30% of foreign debt may resist this approach, the plan is not based on settling the entire debt using Bitcoin, which makes the strategy practical,” added the CryptoQuant founder.

A chart showing BTC's realized cap | Source: Ki_young_ju/X

Juvenile Ju believes that using “pumped assets” such as BTC to offset dollar-denominated debt could face creditor acceptance challenges. However, the United States’ creation of a strategic Bitcoin reserve could serve as a “symbolic first step” toward global, nationwide legitimacy for the flagship cryptocurrency – as seen with assets like gold.

In a post on “However, if governments continue to accumulate Bitcoin until 2050 and its price continues to rise, I doubt they will actually abandon it,” Juvenile Ju concluded.

BTC price at a glance

At the time of writing, BTC is trading around $97,000, reflecting a decline of 0.4% over the last 24 hours. According to CoinGecko data, the main cryptocurrency has fallen by 3.6% in the last seven days.

The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView