Elon Musk has just repeated what a lot of Bitcoin supporters have been saying for years – the US government spends much more than it can afford, and things can be on their way to a financial disaster. In a recent message, Musk pointed out that Trump’s tax cuts could add no less than $ 2.4 trillion to the already mass debt of the country. His warning adds weight to the growing fear that the American financial basis is not as strong as it seems.
Increasing guilt, growing doubts
The American national debt is now covering $ 36 trillion, with $ 1.13 trillion to annual interest payments. Fiscal worries have already led investors to borrow alternative assets such as Bitcoin and Gold, while government spirals are out of hand. The warning from Musk comes as more analysts emphasize how repeatedly increasing the debt ceiling is easy to mask long -term insolvency. Fiscal hawks claim that the US is effectively bankrupt, something that bitcoiners have said for years.
Is the Fiat system broken?
Bitcoin believers have long pointed to the defects of the fault-based FIAT system. With debt-to-GDP ratios in advanced countries that are now 100%at the top, new loans no longer feeds real growth. Instead, it reduces the ability of the economy to recover, such as eating too much ice until you get sick. Economists claim that the system is untenable without drastic policy changes.
Where are we going from here?
Experts such as Russell Napier say that governments can try to blow up, perform financial repression or devalue currencies, who could all push more investors in crypto. Because Musk now participated in the conversation, the urgency of the problem feels more real. His influence could accelerate the shift of major players in assets such as Bitcoin, XRP and Gold.
In short, if the tax discipline is not quickly restored, the world can be forced to reconsider what ‘money’ means, and crypto could play a leading role in that shift.