10/20 update below. This post was originally published on October 18
Tesla billionaire Elon Musk to put dogecoin in “treasury” This week, Tesla’s sudden move to bitcoin sparked bitcoin price panic.
Bitcoin prices hit a peak of $70,000 per bitcoin in recent weeks thanks to BlackRock and China, fueling speculation that Tesla’s $750 million worth of bitcoin was moved to new addresses following a two-year period of inactivity. It sold its remaining bitcoin.
Now, as billionaire investor Stanley Druckenmiller issues a dire Federal Reserve warning, Elon Musk has repeatedly warned that the U.S. is teetering on the brink of “bankruptcy.”
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Tesla billionaire Elon Musk has repeatedly warned that America is headed for “bankruptcy.” … [+]
“Excessive Government Spending Is Driving America to Bankruptcy,” Musk Published X to X, the social media platform he bought from Twitter and rebranded.
“The government is out of control,” Musk’s post, citing an anonymous financial account that said “$500 billion was added to the national debt in the last 3 weeks.”
Meanwhile, talking At a town hall meeting in Folsom, Pennsylvania, Musk warned that inflation would once again spiral out of control as a result of “crazy” government spending.
“The federal government is spending America into bankruptcy … and that’s what really leads to inflation … when the government spends more than it brings in,” Musk said, calling the tax “dangerous.”
“We need to drastically reduce the level of government spending so we don’t run up unpayable government debt and drive the country into bankruptcy,” Musk said.
10/20 Update: Elon Musk continues to warn that US spending is spiraling out of control. Posting For X “It has to stop.”
“The U.S. Treasury — your tax dollars — is being squandered at an alarming rate,” Musk posted, citing a record from the political action committee (PAC) Musk founded that “Half a trillion dollars has been added to the national debt. In the last three weeks.”
“Waste spending in this country is out of control,” America PAC posted, adding that “a sector of government efficiency is desperately needed.”
Musk has agreed to head a so-called Department of Government Effectiveness proposed by former US president and Republican candidate Donald Trump, calling it Doge – a reference to the meme that is the basis of the dogecoin cryptocurrency.
The dogecoin cryptocurrency, a tongue-in-cheek rival to bitcoin that has been semi-adopted by Musk in recent years, saw its price jump 25% last week on the back of Musk’s doge industry comments. Billionaire Mark Cuban joked that if Donald Trump takes back the White House next month, Musk could put “dogecoin in the US treasury.”.
Last month, Musk met with El Salvador’s pro-Bitcoin President Nayeb Bugel, who made history in 2021 when El Salvador adopted bitcoin as legal tender, with Bugel predicting that America’s days may be numbered.
The U.S. national debt has soared in recent years, surpassing $34 trillion by early 2024, largely due to Covid and lockdown stimulus measures that have spiraled out of control and forced the Federal Reserve to raise interest rates at a historic clip.
Earlier this year, Bank of America analysts warned that the U.S. debt burden would increase by $1 trillion every 100 days — fueling bitcoin’s rise — and could reach $36 trillion by the end of 2024.
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Bitcoin price has returned to its all-time high this year as the Federal Reserve gears up. … [+]
Earlier this month, JP Morgan analysts predicted that so-called “devaluation trading” could fuel bitcoin’s rally in the wake of the US election.
Analysts said gold and bitcoin could be boosted by “continuing high government deficits in major economies, waning confidence in fiat currencies in some emerging markets and a broader diversification away from the dollar” in a possible Trump election. Strengthening demonetisation trade.
“Rising geopolitical tensions and the upcoming US election could reinforce what some investors call ‘devaluation trade’, favoring both gold and bitcoin,” JP Morgan analysts led by Nikolas Panikirtzoglou wrote in a note to clients. i saw By Market monitoring.
