Senator Cynthia Lummis asserts for Bitcoin buying, claiming that such a move may help cut the US debt by half in the next 20 years, fueling market optimism.
In a recent interview, Senator Cynthia Lummis proposed that accumulating more Bitcoin could reduce U.S. debt by half within 20 years, generating optimism in the crypto market.
Known for her strong support of Bitcoin, Lummis emphasized its long-term potential as the flagship cryptocurrency reached new all-time highs, breaking records daily.
Senator Cynthia Lummis Advocates Bitcoin for U.S. Debt Reduction
During a FOX interview, Senator Cynthia Lummis compared Bitcoin’s economic value to that of gold and oil, suggesting its inclusion in the nation’s reserves.
She proposed acquiring 200,000 BTC initially and accumulating 1 million BTC over 20 years, asserting this strategy could help cut the U.S. debt by 50% within the same period.
Lummis highlighted Bitcoin’s rising value as a counter to the U.S. dollar’s declining purchasing power, which could help preserve the dollar’s role as the global reserve currency.
She described Bitcoin as a long-term store of value, akin to gold or oil, and noted its strategic reserve potential to protect investors from inflation and strengthen the dollar’s global dominance.
Additionally, her Bitcoin Act of 2024 seeks to formalize this proposal by blending asset diversification with proactive debt management.
The plan leverages Bitcoin’s deflationary nature to integrate modern financial tools into traditional systems.
MicroStrategy’s Michael Saylor expressed similar views recently, suggesting that accumulating Bitcoin could help offset the U.S. government’s $16 trillion debt.
Bitcoin Hits New ATH Amid Optimism
Bitcoin’s price rose 0.55% to $98,673.02 and hit an all-time high of $99,502.92 within the past 24 hours.
While Bitcoin Futures Open Interest remained stable, indicating investor caution amid the rally, the market sentiment remains robust.
Financial expert Robert Kiyosaki has also supported Saylor’s prediction, forecasting that Bitcoin could reach $13 million.
The rally coincides with Lummis advocating for Bitcoin user protections, including self-custody and wallet security.
She underscored Bitcoin’s decentralized nature and accessibility, emphasizing that users must retain control over their assets to safeguard financial freedom.
Lummis also opposed government monopolization of Bitcoin, citing its ability to empower individuals and uplift marginalized communities. By preserving Bitcoin property rights, she aims to maintain its role as a tool for financial empowerment.
Broader Market Optimism With Strategic Reserve Proposal
Lummis recently proposed selling the Federal Reserve’s gold reserves to fund the purchase of 1 million Bitcoin for a national strategic reserve.
This aligns with newly elected U.S. President Donald Trump’s campaign promises to support the crypto industry.
Trump’s pledge to establish Bitcoin as a U.S. strategic reserve and introduce clear regulatory pathways for crypto has further energized market optimism.
Moreover, the anticipated resignation of U.S. SEC Chair Gary Gensler, widely viewed as an anti-crypto figure, has added to the positive sentiment, reinforcing the belief that the U.S. may adopt more crypto-friendly policies under the current administration.
