Elon Musk issues $38,000,000,000,000 bankruptcy warning that could explode Bitcoin price
Elon Musk has just issued an expensive warning to the United States government, expressing his fears surrounding impending bankruptcy as a national debt worth over $38 billion continues to grow.
One of the biggest reasons why Elon Musk was motivated to lead the Department of Government Efficiency (DOGE) was due to US government's 'unsustainable debt', as he believed that bankruptcy was an inevitability unless major cuts were made.
He initially pledged over $2 trillion in cuts before he took the reigns of DOGE, but fell considerably short of even the revised $1 trillion figure by the time he exited from the role earlier this year.
However, following further debt issues he raised alongside the Big Beautiful Bill, Musk has expressed another major warning regarding bankruptcy, and it could end up significantly affecting Bitcoin too.
Advert
As reported by Forbes, Musk's recent appearance on the Joe Rogan Experience saw the world's richest man argue that it's now not possible to tackle America's debt issue.
"It would be accurate to say that even unless you go like super draconian on cutting waste and fraud which you can't really do in a democratic country then there's no way to solve the debt crisis," Musk expressed.
He added that "the interest on a national debt is bigger than the entire military budget and growing," calling the situation "crazy" overall.
Bitcoin has already benefitted significantly from the second Trump presidency, growing over double in price in just a few months and roughly staying above the $100,000 mark ever since.
Many have speculated that further bankruptcy and debt fears could 'explode' this price, especially as people look to move away from the US dollar to other funds, with Musk himself holding more than $1 billion in Bitcoin through SpaceX.
"Even if you implement all of these savings, you're only delaying the day of reckoning for when America goes bankrupt," the billionaire continued. "I came to the conclusion that the only way to get us out of the debt crisis and to prevent America from going bankrupt is AI and robotics. We need to grow the economy at a rate that allows us to pay off our debt."
If that is the case then Musk is certainly playing a key role in that, as he leads major companies in both areas with xAI and Tesla's robotics division being among the country's biggest.
There is obviously heavy investment and rapid growth in the area of artificial intelligence too, with Nvidia alone now worth more than almost every country's GDP, and other companies like OpenAI and Google also increasing their revenue considerably.