Bit Bonds: Newmarket CEO Proposes Bitcoin-Infused Strategy to Tackle National Debt
Speaking at the Bitcoin For America event, which coincided with President Trump’s executive order establishing a Strategic Bitcoin Reserve (SBR), Hohns outlined a plan to issue $2 trillion in bonds. Under the proposal, 10% of proceeds ($200 billion) would purchase bitcoin (BTC), while 90% would fund government operations. The bonds would carry a 1% annual interest rate—far below current 10-year Treasury yields of 4.5%—saving an estimated $554 billion in present-value interest costs over a decade.
“The United States federal government could acquire $200 billion of Bitcoin and save $354 billion at the same time,” Hohns remarked, emphasizing the dual benefit of reduced borrowing expenses and bitcoin exposure. Investors would receive a 4.5% annual return plus 50% of bitcoin’s appreciation, with the government retaining the other half.
For American families, Hohns advocated tax-free access to Bit Bonds, shielding gains from income and capital gains taxes. Projections based on bitcoin’s historical performance suggest even modest growth could deliver households a 7% to 17% annualized return. This puts in the hands of everyday American families “a tremendous tool” to defend against inflation, he added.
In the long term, Hohns argued that bitcoin’s potential appreciation could offset trillions in federal debt. At the 25th percentile of bitcoin’s historical growth (37% annually), the government’s retained bitcoin gains could reach $1.776 trillion by 2035. By 2045, those gains might surpass $50.8 trillion, matching projected federal debt levels.
He further noted that the proposal aligns with Treasury Secretary Bessent’s goal to spread debt maturities and curb refinancing risks. While speculative, Hohns framed Bit Bonds as a “win-win-win” for taxpayers, savers, and policymakers.
The summit concluded with calls for more legislative action, though questions remain about bitcoin’s volatility and regulatory hurdles. The event marked a pivotal moment in ongoing debates over cryptocurrency’s role in fiscal policy.
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Newmarket Capital CEO suggests the U.S issue $2t ‘Bit Bonds’ to buy Bitcoin
Newmarket Capital CEO Andrew Hohns suggests incorporating Bitcoin into government bonds as a way to reduce national debt and purchase Bitcoin for the U.S. strategic reserve.
At the Bitcoin ( BTC ) Policy Institute’s Bitcoin for America on March 11, Hohns proposes the idea of “Bit Bonds,” a novel type of U.S. Treasury bond that incorporates Bitcoin into government financing. The idea is to use bond issuance to reduce government borrowing costs and build a strategic Bitcoin reserve , while offering American families a tax-free investment vehicle.
Hohn suggested the U.S. government issue around $2 trillion Bit Bonds, with 90% of the funds allocated for government purchase and 10% of the proceeds would be used to buy Bitcoin. This means that for every $100, around $10 would go to BTC.
“If it’s a $2 trillion issuance right off the bat, that would mean $200 billion worth of Bitcoin if purchased at $90,000 per BTC. That’s 2.22 million Bitcoin. Of course, the price will fluctuate and likely we’ll acquire a different amount than that,” said Hahn during his presentation.
According to the Newmarket Capital CEO, the bonds would enable the United States federal government would be able to acquire $200 billion worth of Bitcoin while saving the government $554 billion in 10-year interest rates at the same time.
This is because Bit Bonds offer a much lower rate of 1% per year compared to the 4.5% interest rate of U.S. Treasuries. Thus, it could significantly cut interest expenses.
Moreover, he said Bit Bonds would become an attractive investment for foreign investors, because they can serve as eligible collateral for range of different swap and derivative arrangements. According to Hahn, investors stand a chance to receive a 4.5% compound annual growth rate on a senior basis, which aligns with the current Treasury yields.
After earning this fixed return, investors receive a 50% share from the upside of the Bitcoin purchase, while the U.S. government receives the remaining 50%. Depending on Bitcoin’s performance, the total returns for investors can be quite attractive, ranging from nearly 7% to as high as 17% annually on a tax-free basis.
“It produces a government entitlement of Bitcoin that is slightly greater than $50.8 trillion which is the expected size of the funded federal debt in the year 2045. In other words, with this plan, we’re in a position to defease the federal debt,” explained Hahn.
In addition, he also suggested Bit Bonds become available for American citizens as it is a ” powerful tool to defend against inflation.” As a savings instrument, Hahn said the bonds should be free of income tax and capital gains tax for the American people.
He claimed a family could invest $2,900 and receive a yield of 7% to 17% over a 10-year period, depending on Bitcoin’s performance throughout the years.
US crypto investors miss out on billions in airdrop profits due to restrictive regulations, report finds
Crypto airdrops have generated huge profits, but just not for U.S. users. DragonFly’s new report reveals how US investors missed out on nearly $2.64 billion in potential airdrop gains from 2020 to 2024 due to geopolitical bans. The research showed how strict regulations and compliance barriers have prevented U.S. users from taking part in major token distributions, leaving them unable to benefit from free crypto windfalls.
This regulatory lack of clarity not only affects individual traders financially, but even the U.S. government is missing out on roughly $525 million to $1.38 billion in tax revenue from geo-blocked airdrops.
Not to forget the loss of corporate tax revenue from offshore migration. One such example is Tether, which reported a $6.2 billion profit in 2024, surpassing even BlackRock. If it was U.S.-based, this would generate an estimated $1.3 billion in federal corporate tax and $316 million in state taxes. The potential tax loss from Tether’s offshore status alone is roughly $1.6 billion annually.
“The cumulative impact of multiple high-revenue crypto firms operating offshore represents a significant lost revenue source for the U.S. government,” DragonFly noted.
As a result, U.S. traders have been forced to seek offshore platforms and use VPNs, exposing them to compliance risks and potential legal issues.
Related: Buterin’s Take on Airdrops: A Use Case for Blockchain Identity
To address these challenges, experts suggest rules to protect airdrops, which are not intended for fundraising, as current regulations misclassify them as investment offerings, thus restricting their adoption.
A proposed “safe harbor framework” would allow airdrops meant for community engagement and usability—rather than financial gain—to operate without heavy regulatory burdens. Key recommendations include:
Related: Bitget Partners with DOGS Project to Bring Zero-Fee Airdrops to Users
By establishing clear regulatory rules, experts believe the U.S. can restore access to airdrops while protecting investors and encouraging innovation. Without action, experts warn that crypto startups will continue to sideline U.S. users, further hurting the nation’s position in the global digital economy.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Arthur Hayes Predicts Bitcoin Bottom at $70K, Sees Strong Bull Market Ahead
Arthur Hayes, former CEO of crypto exchange Bitmex, has shared his outlook on bitcoin’s price trajectory and trading strategy. His analysis comes as BTC recently pulled back from its highs, testing key support levels amid broader market volatility.
He predicted bitcoin could reach a low of $70,000 and emphasized the importance of patience, stating on social media platform X on March 10: “The plan: Be fucking patient.” The former Bitmex executive added:
BTC likely bottoms around $70K. 36% correction from $110K ATH, v normal for a bull market.
Hayes suggested that for a major rally to take place, traditional financial markets—particularly the S&P 500 (SPX) and Nasdaq (NDX)—would need to experience sharp declines, leading to financial institutions collapsing. This, he argued, would push central banks, including the Federal Reserve, the People’s Bank of China (PBOC), the European Central Bank (ECB), and the Bank of Japan (BOJ), to introduce monetary easing policies.
He advised investors on managing market volatility, emphasizing the importance of strategic timing. He urged them to wait for the right moment before making significant investments, stating: “Then you load up the truck.” He opined:
Traders will try to buy the dip, if you are more risk averse, wait for the central banks to ease then deploy more capital. You might not catch the bottom but you also won’t have to mentally suffer through a long period of sideways and potential unrealised losses.
Additionally, he warned of potential turbulence in the short term, noting that bitcoin could retest $78,000, with a drop to $75,000 if it fails to hold that level. He pointed out that a large number of options contracts are concentrated between $70,000 and $75,000, which could lead to heightened volatility.
After discussing price action, Hayes compared bitcoin to traditional stocks, arguing that the two markets function under vastly different conditions. He stated:
BTC is a true free market, stonks are not. Therefore in a fiat liquidity crisis, BTC leads stocks on down and upside.
Hayes predicted in November last year that bitcoin could reach $1 million, citing Trump’s credit expansion policies as a driver of inflation that may push investors toward hard assets like BTC.
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