Elon Musk Warns the US is on the Brink of Bankruptcy, Will Bitcoin Reserve Plan Turn Things Around?
The US economy is on the brink of bankruptcy, can Trump's Bitcoin reserve plan help the country balance its current budget?
According to the latest report by the Department of Government Efficiency (DOGE), the US financial crisis is getting worse by 2023, with a massive spending of $6.16 trillion compared to revenue of $4.47 trillion, leading to a growing deficit.
The last time the United States had a budget surplus was in 2001, and there are now strong calls from the government to reverse this unsustainable trend. Can the Trump administration balance the budget to avoid any kind of default?
Musk's dire warning about US finances
Commenting on this situation, Elon Musk did not hesitate to express his opinion that America is moving towards bankruptcy extremely quickly.
Musk's views also reflect broader concerns about the country's growing financial problems and the potential consequences if the United States continues on its current path.
In response to the crisis, the Wall Street Apes have proposed a new law that would disqualify any member of Congress from running for re-election if the deficit exceeds 3% of the country's GDP.
This would encourage lawmakers to act quickly to fix the deficit, as they want to keep their jobs. Warren Buffett supports the idea, saying it could help solve the problem quickly by forcing Congress to manage the nation's finances more responsibly.
Trump's Bitcoin Reserve Plan: Just a Pipe Dream or a Turning Point for the US Economy?
During his campaign, Trump revealed how he would solve the US national debt crisis. That was by proposing to create a “strategic national Bitcoin reserve” and use it to pay down the $35 trillion debt, but this still raised considerable skepticism.
Currently, the United States holds about 208,109 BTC, worth about $21 billion, but to cover the national debt, each Bitcoin would need to increase to $173 million – a huge increase.
Even if Trump were to buy more Bitcoin, it could disrupt the market and push the price too high. A sovereign wealth fund backed by Bitcoin in particular is impractical due to its enormous financial and economic risks.