Musk predicts: The $38.3 trillion “crisis” may trigger a surge in Bitcoin prices

PANews reported on December 2 that according to Forbes, Elon Musk once again warned that the United States is rapidly heading towards a "debt crisis" that may trigger severe fluctuations in the price of Bitcoin. As traders prepare for possible major policy changes from the Federal Reserve in December, Musk predicts that in the future "money as a concept will cease to exist" and energy will become the only "real currency." In an interview with Nikhil Kamath, Musk said: "This is why I say Bitcoin is based on energy. After all, you cannot create energy through legislation." He also mentioned that "the United States is significantly increasing the money supply through a deficit of about $2 trillion." Musk further predicted that within three years, the development of artificial intelligence will enable the output of goods and services to grow faster than inflation. "In about three years, output of goods and services will grow faster than the money supply. By then there will likely be deflation, interest rates will fall to zero, and the debt problem will be much smaller than it is now."

Musk had helped Trump return to the White House through campaign rallies and warnings about the country's rising debt, which now exceeds $38 trillion, but his relationship with Trump deteriorated sharply after Trump failed to rein in government spending. Although Musk's support for Bitcoin and cryptocurrencies is no longer as strong as it was during the COVID-19 epidemic, he continues to provide support for Bitcoin and Dogecoin. After leaving the White House, Musk said that the "American Party" he advocated would prefer Bitcoin to the U.S. dollar, calling the U.S. dollar and other non-asset-backed currencies "hopeless."

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