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In his recent social media post, centibillionaire Elon Musk voiced his concerns about the U.S national debt and excessive government spending.
Musk has opined that productivity growth in the US is the most surefire way of preventing a financial crisis instead of austerity. He has gone as far as predicting that the US could face bankruptcy.
“Bitcoin has never been more important”
Bitwise CEO Hunter Horsley is convinced that fiat currencies of the likes of the US dollar will continue losing their value due to inflation.
In light of Musk’s recent warning, Horsley opined that Bitcoin has never actually been more important.
Bitcoin is touted by its advocates as a safe haven due to the fact that its supply is limited to just 21 million coins, meaning that it could act as a hedge against currency debasement.
“Too little, too late”
Musk has been spearheading the efforts of the new administration to cut government spending with the help of the Department of Government Efficiency (DOGE).
However, many critics believe that the efforts of the agency are insufficient to make a substantial impact.
Peter Schiff, a frequent critic of Bitcoin, claims that a dollar crisis has already started.
“Unfortunately, I think DOGE was too little, too late to really move the needle on a sovereign debt and dollar crisis. The process has already started,” he said.
The U.S. Dollar Index (DXY), which tracks the strength of the greenback against a basket of foreign currencies, has plunged by 10%.
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