Can a $2 Trillion Bitcoin Bond Save the U.S. Debt? Newmarket Capital CEO Says So!
On March 11, at the "Bitcoin for America" event, Newmarket Capital CEO Andrew Hohns proposed a thought experiment suggesting that the U.S. issue $2 trillion in "Bitcoin bonds" aimed at helping the U.S. lower borrowing costs, establish a massive national Bitcoin reserve, and even repay future debts.
Hohns' proposal comes after U.S. President Trump announced a strategic Bitcoin reserve (SBR), which requires the U.S. Treasury and Commerce Department to find "budget-neutral" ways to purchase Bitcoin.
Hohns' "Bitcoin bond" plan is as follows: issue $2 trillion in bonds, of which 10% ($200 billion) would be used to purchase Bitcoin, while the remaining 90% would be allocated for the government's regular expenditures. These bonds would have an interest rate of only 1% for the first 10 years, significantly lower than current market rates.
Additionally, this low-interest-rate structure would provide bondholders with a guaranteed annual return of 4.5% and potential gains from rising Bitcoin prices. Hohns emphasized that the government would retain half of the gains from rising Bitcoin prices, thus achieving "revenue neutrality," meaning that the total cost to taxpayers would be offset by the lower interest burden.
Hohns pointed out that Bitcoin bonds would not only save the U.S. Treasury from interest expenditures but also bring additional revenue from Bitcoin appreciation. Even accounting for the $200 billion Bitcoin purchase cost, the net present value (NPV) of the bonds could still save $354 billion, and rising Bitcoin prices might offset some federal debt.
Moreover, the low interest rates on Bitcoin bonds could lower borrowing costs and alleviate burdens from mortgages, auto loans, and small business financing. He also suggested exempting income tax and capital gains tax on Bitcoin bonds held by American households to aid in wealth accumulation.
In summary, although Hohns' Bitcoin bond plan is a "thought experiment," its "triple-win" concept: reducing government interest costs, establishing strategic reserves, and aiding citizen savings, has attracted widespread attention.
Despite challenges such as regulation, market acceptance, and Bitcoin volatility, if implemented, this proposal could open new pathways for fiscal policy and promote deeper integration of cryptocurrency with traditional finance.
#比特币债券 #SBR