NNewmarket Capital CEO suggests the U.S issue $2t ‘Bit Bonds’ to buy Bitcoin

Newmarket CEO CEO Andrew Hohns suggests incorporating bitcoin into government bonds to reduce national debt and buy Bitcoin for the American strategic reserve.

At Bitcoin (BTC) Bitcoin for America from the Political Institute on March 11, Hohns to propose The idea of ​​”Bit bonds”, a new type of obligation of the US Treasury which incorporates Bitcoin into funding by the government. The idea is to use the emission of bonds to reduce government loan costs and build a Strategic bitcoin reserveWhile offering American families an investment vehicle in tax franchise.

Hohn suggested that the emission of the US government of approximately 2 billions of dollars in bonds, with 90% of funds allocated to the purchase of the government and 10% of the product would be used to buy Bitcoin. This means that for each $ 100, around $ 10 would go to BTC.

“If it is a program of $ 2 billions from the start, this would mean for $ 200 billion Bitcoin if it was bought at $ 90,000 per BTC. It is 2.22 million bitcoins. Of course, the price will fluctuate and we will probably acquire a different amount from that, “said Hahn during his presentation.

According to the CEO of Newmarket Capital, the obligations would allow the UNITED STATES The federal government would be able to acquire $ 200 billion in Bitcoin while saving the government at $ 554 billion in interest rate over 10 years at the same time.

Indeed, ILO obligations offer a much lower rate of 1% per year compared to the interest rate of 4.5% of American treasury bills. Thus, this could considerably reduce interest expenses.

In addition, he said that ILO obligations would become an attractive investment for foreign investors, as they can serve as a guarantee eligible for the range of different swaps and derivative arrangements. According to Hahn, investors have a chance to receive an annual growth rate made up of 4.5% on a senior basis, which aligns the current yields of the Treasury.

After obtaining this fixed return, investors receive a share of 50% of the increase in the purchase of Bitcoin, while the United States government receives the remaining 50%. Depending on Bitcoin’s performance, total yields for investors can be quite attractive, ranging from almost 7% to 17% per year on an excessive tax basis.

“It produces a government law of Bitcoin which is slightly greater than 50.8 billions of dollars, which is the expected size of the federal debt funded in the year 2045. In other words, with this plan, we are able to challenge the federal debt,” said Hahn.

In addition, he also suggested that bit bonds become available for American citizens because it is a “powerful tool to defend themselves against inflation”. As a savings instrument, Hahn said that obligations should be free from income tax and capital gains in capital gains for the American people.

He said that a family could invest $ 2,900 and receive a return from 7% to 17% over a period of 10 years, according to Bitcoin’s performance over the years.