Tesla billionaire Elon Musk, after becoming a close advisor to US President-elect Donald Trump, recently embarked on a campaign against the government over spending—propose a dogecoin-inspired “fix”.
Musk, who quietly confirmed a change in the crypto market last weeksupported some of the greatest Wall Street’s Bitcoin and Crypto Bulls Are His Favorite Candidates for Trump’s Cabinet.
NOW, as traders bet the new Trump administration could open the crypto floodgatesMusk’s latest salvo against the $36 trillion debt spiral has sparked calls for Musk’s Doge’s Department of Government Effectiveness to support the Bitcoin Act of 2024.
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Tesla Chief Executive Elon Musk has repeatedly warned that the United States is on the verge of doing so. … (+)
“America is heading towards de facto bankruptcy very quickly,” Musk said job ” to of all public revenue devoted to the payment of interest.
US debt has soared in recent years, surpassing $34 trillion in early 2024, as Covid and lockdown stimulus measures contributed to massive government spending and sending inflation out of control in 2022 .
Inflation of more than 10% has forced the Federal Reserve to raise interest rates at a historic pace, pushing up interest payments on the debt and fueling fears of a “death spiral”.
Musk’s campaign against US overspending resulted in the creation of the Doge Department of Government Effectiveness, 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, although that Tesla continues to hold around 10,000 bitcoins. 800 million dollars on its balance sheet.
Musk’s US “bankruptcy” warning was cited by Bitcoin and crypto advocate Senator Cynthia Lummis, who replied: “Enter the Bitcoin Act,” a reference to a bill she introduced to Congress in July of this year that would create a U.S. strategic reserve of Bitcoin if passed by lawmakers.
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The price of bitcoin has surged this year, helped by Donald Trump’s election victory and support from … (+)
The bill, titled Boosting Innovation, Technology and Competitiveness Through Optimized Investment Nationwide (BITCOIN) Act, proposes that the United States purchase 1 million bitcoins over five years to reduce the U.S. national debt.
“Bitcoin Solves This Problem,” Kraken Bitcoin and Crypto Exchange Account replied to Musk.
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.
“The possibility of a strategic Bitcoin reserve intrigues us because the market is likely underestimating the magnitude of the movement that could result in the first half of 2025 if this becomes a reality,” Benoit Bosc, former portfolio manager at Millennium who launched a crypto consulting business last month, said in emailed comments.