The post Elon Musk Warns U.S on Brink of Bankruptcy : Can Trump’s Bitcoin Reserve Plan Fix It? appeared first on Coinpedia Fintech News
According to the latest D.O.G.E report, the U.S. government’s financial crisis deepened in FY2023, with a staggering $6.16 trillion in spending against only $4.47 trillion in revenue, leading to an ever-widening deficit. The last time the government ran a budget surplus was back in 2001, and now there is a strong call to reverse this unsustainable trend. The question arises if the US government can balance its budget to avoid any bankruptcy situation.
Here are the experts taking a jibe at the US government’s fiscal problems.
Musk’s Dire Warning on America’s Finances
Elon Musk didn’t hold back in commenting on the situation, in his X post he said, that America is “headed for bankruptcy super fast.” Musk’s words reflect widespread concerns about the country’s growing fiscal problems and the potential consequences of continuing down this path.
In FY2023, the U.S. Government spent $6.16. trillion while only bringing in $4.47 trillion.The last budget surplus was in 2001.This trend must be reversed, and we must balance the budget. pic.twitter.com/mzLaMTZQxA
— Department of Government Efficiency (@DOGE) November 23, 2024
Proposed Legislative Solution: Holding Congress Accountable
In response to the crisis, Wall Street Apes proposed a new law that would make any member of Congress ineligible for reelection if the deficit exceeds 3% of the country’s GDP. This would encourage lawmakers to act quickly to fix the deficit, as they’d want to keep their jobs. Warren Buffet supported this idea, saying it could help solve the problem fast by motivating Congress to manage the nation’s finances more responsibly.
Trump’s Bitcoin Reserve Plan: A Pipe Dream?
Trump in his election campaign has already revealed how he will address the U.S. national debt crisis. Donald Trump has proposed creating a “strategic national Bitcoin reserve” and using it to pay off the $35 trillion debt has raised significant skepticism. Currently, the U.S. holds about 208,109 BTC, valued at around $21 billion, but to cover the national debt, each Bitcoin would need to rise to $173 million—an astronomical increase.
Even if Trump bought more Bitcoin, it would likely disrupt the market and drive prices too high. While possible, a Bitcoin-backed sovereign wealth fund is impractical due to its huge financial and economic risks. Bitcoin is at present running towards $100K the dire situation of the US economy can be worrisome.
What do you think will be the best strategy to deal with this financial crisis will it impact the booming crypto market pace?
