2407: Lummis Reveals How Bitcoin Could Erase America's $39 Trillion Debt

**Justin Verrengia** (0:00)
Every empire in history thought their money was different. Rome thought that. Britain thought that. America's learning the same lesson right now. Bitcoin doesn't care. Who prints the money? Let's get into it. America doesn't have a debt problem. America has a money problem. That's why Senator Cynthia Lummis just said, Bitcoin could actually erase our national debt. At first, that sounds completely ridiculous. How could one asset possibly eliminate 39 trillion worth of debt? Bitcoin doesn't magically pay off government debt. The idea is much simpler. Lummis believes Bitcoin will become so valuable over time that if the United States accumulated a meaningful position today, its value could eventually exceed America's national debt. And more specifically, she suggested acquiring more than 5% of the entire Bitcoin supply.
Think about what that actually means. One nation owning more than 5% of the world's hardest asset. Meanwhile, the US government continues creating more dollars, printing them out of thin air, issuing more debt and expanding the money supply. One system becomes more scarce every four years. The other becomes less scarce every single year. That's why Bitcoin keeps appreciating over long periods of time. Not because Bitcoin is changing, because the money measuring Bitcoin keeps changing. This is where most people get confused. They assume Bitcoin has to do something extraordinary. It really doesn't. It simply has to remain scarce while the world keeps demanding more of it. If corporations continue buying, if pension funds continue buying, if sovereign wealth funds continue buying, if nation states continue buying, and if millions of ordinary people continue buying, what happens to an asset that nobody can print more of? Now imagine the United States actually starts buying not a few thousand, but one million Bitcoin, more than 5% of the entire supply. Do you think China just watches that happen and does nothing? Do you think Japan, Russia, India, or Saudi Arabia simply stand aside? Of course not. That's how strategic asset races begin. One nation buys, the next nation can't afford to be left behind. That's why a strategic Bitcoin reserve isn't the end of the story. It's only the beginning of the global Bitcoin arms race. Whether she's ultimately right or wrong almost isn't even the point. The point is that the conversation has changed. A decade ago, politicians debated whether Bitcoin should be banned. And today, a US senator is publicly discussing whether Bitcoin could one day erase America's national debt. Those are two completely different conversations. Bitcoin didn't change. The world did. Just like yesterday's Clarity Act debate wasn't really about Bitcoin, today's debt conversation isn't really about debt. It's about recognizing that the hardest money ever created may become the most valuable strategic asset on earth. And if Senator Lummis is right, the biggest opportunity isn't paying off America's debt, it's buying Bitcoin before every other nation reaches the same exact conclusion. So do you believe Bitcoin could eventually erase America's national debt? Or is Senator Lummis aiming too high? Now, don't take my word for it. Listen to Senator Cynthia Lummis explain it for herself.

**Cynthia Lummis** (3:08)
Well, if we had Bitcoin in a strategic reserve, that was a buy and hold strategy. We could take, for example, if we held 5% of the world's Bitcoin and held it for 20 years without selling any of it, we believe we'd be in a position where it could reduce our debt by one third to one half. And if we held even more than 5% of the world's Bitcoin, it could actually erase our debt.

**Justin Verrengia** (3:38)
Very powerful words right there, completely erasing our entire $39 trillion national debt by simply purchasing more than one million Bitcoin and huddling for 20 years, which is what the Strategic Bitcoin Reserve for the United States of America is proposing. Do you think we would actually do that though? Let me know your thoughts. This is a small window of opportunity for America to take the lead. As you know, President Bukele, happy birthday, his birthday is today, was the first country via El Salvador to adopt Bitcoin as legal tender. They now have over 7,000 Bitcoin. They've been averaging a new Bitcoin buy of one coin per day very persistently. And now other nations are watching places like El Salvador transform and they want a piece of the Bitcoin pie. So will it be the United States that leads or will we get left behind? And will China or Russia or some other powerful country take the majority of the Bitcoin? Because only so many countries will be able to have a one million Bitcoin strategic reserve, especially considering we already have companies on the verge of reaching one million Bitcoin, which is MSTR with Michael Saylor and BlackRock as an asset manager has over 700,000 Bitcoin. So they're most likely going to reach the one million milestone first. But who's going to be the first country to set precedent and be able to achieve that? Let me know your thoughts. Senator Lummis also said President Trump voluntarily agreed to tougher guardrails. Meaningful enforcement and greater transparency than the law demanded. Let's get the Clarity Act passed now. This was from an interview we played yesterday. I just wanted to highlight this because ultimately, from my understanding, the Democrats don't like the fact that Trump was able to profit over a billion dollars in his crypto ventures. So, they're trying to make an ethics proposal within the Clarity Act, which they already revised. And Trump said, no problem, I'll agree to it. Ultimately, the loophole, as far as I'm concerned, is he can just have his dog or baron Trump hold the Bitcoin on his behalf. No harm done. But on a serious note, it was something along the lines of he would have to forfeit all of his crypto positions and or put it in a blind trust. And he already agreed to that. So hopefully, that doesn't hold back the Clarity Act because right now, there's a green light window opportunity to get this push forward. And if it hits the Senate floor, all the experts are predicting it's most likely going to pass, including Anthony Scaramucci, in which we played a video of yesterday.