The USD collapse is shaking the financial world. Big names like Jack Mallers and Elon Musk are warning about possible U.S. bankruptcy. They’re worried about government spending and what it means for regular money.
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USD Collapse: Insights from Jack Mallers & Elon Musk on U.S. Bankruptcy and Bitcoin’s Role
Elon Musk’s Dire Warning on USD Collapse
Elon Musk, who runs Tesla and SpaceX, is really worried about U.S. money problems. On October 3, 2024, he tweeted, “America is headed for bankruptcy.” He was talking about a huge $204 billion jump in U.S. debt in just one day.
Musk also said something scary. He pointed out that just paying interest on the country’s debt now costs more than the whole defense budget.
Jack Mallers’ Bitcoin Advocacy
Jack Mallers, who runs a Bitcoin payment company called Strike, says people should think twice about saving U.S. dollars. He warned, “The Fed has begun cutting rates. What does that mean? Financial authorities have decided who is paying for their mistakes: those holding US dollars. Get out of dollars. #Bitcoin is the exit door for everyone.”
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Mallers thinks the Federal Reserve’s actions will make dollars worth less. But he says it might make Bitcoin and gold worth more. He explained, “Printing money, isn’t printing growth. In reality, it destroys those holding the currency. So, if you’re living off the USD value, your life will worsen over the next few years. It will only benefit those that can afford assets like Bitcoin.”
The Role of Bitcoin in Economic Uncertainty
As people worry more about U.S. money problems, many are looking at Bitcoin as a possible safe bet. BlackRock, a big money management company, recently called Bitcoin a “unique diversifier.”
They said:
“Over the long term, bitcoin’s adoption trajectory is likely to be driven by the intensity of concerns over global monetary stability, geopolitical stability, U.S. fiscal sustainability, and U.S. political stability.”
Bitcoin’s price goes up and down a lot. But some people think it’s a good alternative to regular money when the economy is shaky. They say this is because no one controls Bitcoin, and there’s a limit to how much can exist.
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