Tesla’s billionaire CEO, Elon Musk, took to the campaign trail last year to support Donald Trump, emphasizing a “financial emergency” as the U.S. debt continues to climb uncontrollably. He is laying the groundwork for his Doge department of government efficiency, which may soon integrate bitcoin technology.
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The price of bitcoin soared past the $100,000 mark as traders speculated that the escalating U.S. debt could create a “doom loop” that would drive the value of bitcoin even higher.
Following Musk’s endorsement of bitcoin advocate Ron Paul, author of the 2009 book *End The Fed*, for the position of Federal Reserve chair, Musk expressed that the rapidly increasing U.S. debt clock is “terrifying.” Meanwhile, David Sacks, Trump’s crypto advisor, confirmed he is working on a plan to establish a bitcoin reserve that could potentially “wipe out” the U.S. debt.
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Elon Musk has deemed the rising U.S. debt clock “terrifying,” as officials at the White House explore a national reserve of bitcoin. … [+]
Musk took to X this week to announce, “The debt clock is terrifying,” referring to the U.S. Debt Clock website that monitors government expenditures and has recently introduced a section for Musk’s Doge, which has already amassed $100 billion in savings.
This statement came in response to Senator Mike Lee’s remarks about the alarming U.S. debt level of $36 trillion, which he found “deeply disturbing,” even with the Doge figures offering a hint of optimism.
Musk, who was selected to lead the Doge department by Trump’s transition team leader Howard Lutnick before Lutnick’s appointment as Commerce secretary,
Last year, at the Bitcoin 2024 conference, Trump pledged to establish a “strategic national bitcoin reserve,” later telling Fox Business: “Who knows, maybe we’ll pay off our $35 trillion; we could send them a little crypto check, right? Give them a bit of bitcoin to eliminate our $35 trillion debt.”
The U.S. debt has expanded significantly in recent years, climbing past $34 trillion at the start of 2024 and exceeding $35 trillion just a year later, attributed in part to Covid-era stimulus measures that led to heightened government spending and surging inflation in 2022.
Inflation rates exceeding 10% compelled the Federal Reserve to implement aggressive interest rate hikes, escalating debt servicing costs and raising concerns of a potential “death spiral.”
Earlier this week, Trump’s crypto advisor David Sacks hinted that “important announcements are coming soon” after revealing the Trump administration’s investigation into the viability of a national bitcoin reserve, akin to the current U.S. oil and gold reserves.
“That is one of the primary focus areas for our internal working group in the administration,” Sacks stated at a press conference earlier this month.
Sacks has also mentioned on X that “the inter-agency working group on digital assets is collaborating effectively to execute the president’s agenda.”
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The price of bitcoin has experienced significant growth over recent years, as U.S. debt has soared, prompting Elon Musk to label the situation as “terrifying.” … [+]
The Doge department references the shiba inu Doge meme, which is also associated with the dogecoin cryptocurrency, dubbed by Musk as his “favorite” cryptocurrency and accepted as payment at his Tesla car company.
Following Trump’s election victory, the price of dogecoin surged significantly, rising alongside bitcoin, as traders anticipated that Musk’s close relationship with the U.S. president would further enhance the prospects for the meme-based cryptocurrency.
