David Okoya
3 min read
In This Article:
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Tesla CEO Elon Musk has recently sparked discussions about U.S. fiscal concerns.
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Bitwise CEO Hunter Horsley has pitched Musk’s remarks as a case for Bitcoin.
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BitMEX founder and Maelstrom investment chief Arthur Hayes said in November that Trump’s economic policies could send Bitcoin’s price soaring.
The U.S. is in a worrying fiscal situation. Most recently, the country has seen its credit rating downgraded, reflecting concerns over its ability to manage its debt, which now sits at $36.2 trillion as government spending continues to surpass revenue.
Amid debates on the best course of action to tackle the problem, Tesla (NASDAQ:TSLA) CEO Elon Musk has pitched his tent behind the Trump administration’s policy agenda. According to one pro-crypto market expert, the proposed solution makes a case for Bitcoin.
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Musk said last week that accelerating GDP growth was the only way the U.S. could get out of its fiscal quagmire.
“DOGE has and will do great work to postpone the day of bankruptcy of America, but the profligacy of government means that only radical improvements in productivity can save our country,” he said.
Musk’s sentiments echo those of Treasury Secretary Scott Bessent last week.
“We’ve inherited a 6.7% deficit-to-GDP, the highest outside war or recession. Our focus is to grow the economy faster than the debt. That’s how we will stabilize debt-to-GDP,” Bessent told CNN.
Reacting to Musk’s remarks, however, Bitwise CEO Hunter Horsley pitched it as a case for Bitcoin.
“Every sign in the world is saying monetary debasement is the road ahead,” he said. “Bitcoin has never been more important.”
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Horsley’s sentiments come as efforts to accelerate GDP growth are likely to involve increasing the monetary supply to stimulate economic activity, which could lead to the debasement of the dollar, an idea that Trump has been open to in the past to boost U.S. exports. Bitcoin proponents argue that the digital asset has the potential to act as a hedge against such currency debasement, similar to gold, due to its scarcity.
