Elon Musk Sounds Alarm on $38 Trillion U.S. Debt, Says Bitcoin Could Explode
Elon Musk, the Tesla billionaire whose electric car company holds more than $1 billion worth of bitcoin, has once more cautioned that the U.S. is racing toward bankruptcy, coinciding with U.S. Treasury Secretary Scott Bessent’s unexpected endorsement of bitcoin. Musk, who has raised concerns in the crypto community by transferring a portion of the nearly $1 billion in bitcoin he manages through his rocket company SpaceX, played a role in assisting U.S. president Donald Trump’s return to the White House last year with his ominous predictions of an impending financial disaster. Now, as traders brace for the “mother of all” Federal Reserve pivots, Musk has warned it’s not possible to solve the U.S. debt crisis without growing the economy at a fantastic pace—something that bitcoin supporters think will blow up the bitcoin price. Elon Musk continues to make waves in the crypto world with his connections to Tesla and SpaceX.
The bitcoin price remains a hot topic, especially with Musk’s influence on the market. His image as a tech visionary intertwines with the evolving landscape of cryptocurrency. Tesla billionaire Elon Musk, the founder of Tesla and SpaceX, has issued a stark warning that the U.S. is on a path toward bankruptcy—an outlook that many bitcoin enthusiasts believe could significantly boost the bitcoin price. “It would be accurate to say that even unless you could go like super draconian … on cutting waste and fraud which you can’t really do in a democratic country then …. there’s no way to solve the the the debt crisis,” Musk said. U.S. debt has skyrocketed in recent years following huge government spending through the Covid-era and lockdowns, with interest rates that were rapidly hiked to rein in inflation adding to the cost of servicing the ballooning $38 trillion U.S. debt pile. “The interest on a national debt is bigger than the entire the entire military budget and growing. This is crazy,” Musk remarked to Rogan during their extensive three-hour discussion.
Musk, who entered the Trump administration through his Doge department of government efficiency, experienced a significant rift with President Donald Trump earlier this year regarding Trump’s signature tax and spend bill, which is projected to increase the national debt by trillions of dollars over the next decade. Musk subsequently validated the rumors that his new America Party would embrace bitcoin, labeling the U.S. dollar and other so-called fiat currencies not backed by assets as “hopeless.” However, Musk seems to have largely abandoned the notion of stopping the U.S. from descending into “bankruptcy” through cost-cutting measures. “Even if you implement all these savings, you’re only delaying the day of reckoning for when America goes bankrupt,” Musk stated. “I came to the conclusion that the only way to get us out of the debt crisis and to prevent America from going bankrupt is AI and robotics. We need to grow the economy at a rate that allows us to pay off our debt.”
The U.S. debt has surged past $38 trillion as of last month, marking an increase of $500 billion just in October, as reported by analysts. “It is a horrible, no good situation,” Anthony Pompliano, a prominent figure in the bitcoin and crypto space, stated. “The only thing I know to do is opt-out of the broken system with some portion of my economic value.” The increasing national debt is likely to drive bitcoin prices higher. It seems neither party is poised to halt their activities in the near future.
