Elon Musk, the Tesla billionaire who hit the campaign trail on behalf of US President-elect Donald Trump, recently warned of a an imminent “financial emergency”.
Elon Musk’s fears over US debt rising to $35 trillion comes like the price of bitcoin jumped— overtaken by meme-based rival Bitcoin’s price dogecoin which exploded thanks to Musk’s support of the Department of Government Efficiency, nicknamed Doge.
NOW, as questions swirl around whether Trump could use bitcoin to ‘erase’ US debtMusk called the growth of U.S. debt “unsustainable.”
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Tesla billionaire Elon Musk’s fears over spiraling US debt come as Bitcoin price … (+)
“Excessive government spending is bankrupting America,” Musk said. job to X, the social media platform he purchased and renamed Twitter, addition: “This growth in debt is unsustainable.”
Musk was responding to Bitcoin supporter Kentucky Sen. Rand Paul, who called the “status quo of $2 trillion annual deficits unsustainable.”
Paul made headlines in 2015 when he began accepting Bitcoin campaign donations to support his Republican bid for the White House – with Donald Trump and many other 2024 candidates following suit – and declared in 2021 in a interview he believed crypto could replace the US dollar due to a lack of trust in the currency and increased government oversight.
The US national debt has soared in recent years, crossing the $34 trillion mark in early 2024, largely due to Covid and stimulus measures that have sent inflation out of control and forced the Federal Reserve to raise interest rates at a historic pace.
Earlier this year, Trump floated the idea that he could use Bitcoin to “pay back our $35 trillion.”– give them a little crypto check, right? We’ll give them some Bitcoin and wipe out our $35 trillion,” he said.
In July, Trump promised to create a “strategic national bitcoin reserve” and predicted that bitcoin could eclipse gold’s $16 trillion market cap in appearance at Bitcoin 2024 conference.
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The price of bitcoin skyrocketed this week, surpassing its previous all-time high and … (+)
Musk’s campaign against US overspending has led to calls for the creation of the Doge Department Of Government Efficiency, which Musk said he believes U.S. spending could be cut by $2 trillion..
The Doge department is a nod to the shiba inu doge meme which is also linked to the cryptocurrency dogecoin, referred to by Elon Musk as his “favorite” cryptocurrency and accepted as payment by his car manufacturer Tesla.
Doge’s teaming up with rival dogecoin bitcoin has caused dogecoin’s price to more than double over the past month, with billionaire Mark Cuban joking Musk could put dogecoin in the US Treasury.