Elon Musk once again criticized the Trump administration's handling of national debt through social media. The Tesla founder pointed out that the recently signed 'One Big Beautiful Bill' plays a crucial role in further amplifying an already severe deficit.
Since traditional methods are not effective, experts from Bitwise and Centora suggest that alternatives like Bitcoin are worth considering for lowering interest rates and curbing excessive spending.
Musk's Debt Cry: From Doge to America Party
There have been many developments regarding Elon Musk in recent days. The former head of the Government Efficiency Department (DOGE), a hypothetical federal agency responsible for reducing government overspending, began July by expressing dissatisfaction with the nation's spending habits on X.
It is obvious with the insane spending of this bill, which increases the debt ceiling by a record FIVE TRILLION DOLLARS that we live in a one-party country – the PORKY PIG PARTY!!
— Elon Musk (@elonmusk) June 30, 2025
Time for a new political party that actually cares about the people.
Musk's recent post is based on his previous posts explicitly criticizing President Trump's 'One Big Beautiful Bill', which was signed into law this week. He also stated that this bill will increase the debt ceiling by $5 trillion.
Amid the ongoing debate between Elon Musk and Trump, the Tesla founder has decided to form his political space, the America Party.
Musk stated that the party's goal is to "restore freedom" and address the "one-party system" of wasteful spending and corruption. His survey on X showed substantial support for the new party.
Beyond political leadership, discussions about the United States' national financial health continue to be highlighted due to their urgency.
Approaching 'Debt Bomb'... Market Warnings
The United States is facing serious and persistent financial problems, which are reaching critical levels. Instead of controlling the growing deficit, legislators continue to raise the ceiling, which Musk calls a "debt bomb".
While policymakers have done almost nothing to address this chronic issue, the market is increasingly raising its voice.
"Debt is increasing rapidly, and interest payments have now become the largest single item for the government. At worst, there is no credible plan to contain it. As interest payments continue to snowball, the thought that 'something must be done' is spreading." – Danny Nelson, Bitwise Research Analyst
If the current situation continues, experts predict hyperinflation and further decline in dollar value. Despite clear and established methods to resolve this, no one seems willing to use them.
Political Avoidance of Debt Solutions
Traditional methods of addressing debt increase, such as spending cuts and tax increases, are highly unpopular. As a result, politicians across the political spectrum are reluctant to implement them.
"History shows there are few ways to escape the debt whirlpool, with war at the top of that list. Otherwise, Washington can drastically cut spending on major items like infrastructure, social security, and defense, or impose sharp tax increases. Both solutions are politically toxic, especially in a democracy where voters resist benefit cuts and tax hikes." – Patrick Houser, Centora Loans and Traditional Finance Director
Following the well-established tradition, legislators have chosen the back-door option: leaving the problem for future American leaders to solve.
🇺🇸 ELON: AMERICA IS GOING BANKRUPT QUICKLY, BUT EVERYONE IS WHISTLING PAST THE GRAVEYARD
— Mario Nawfal (@MarioNawfal) July 1, 2025
"America is going bankrupt extremely quickly, but everyone seems to be whistling past the graveyard.
The Defense Department budget is a trillion dollars a year.
And interest payments on… https://t.co/3j3sLAVYFY pic.twitter.com/ZZcDzgQOHc
"Since there are no painless options on the table, we continue doing what we do best: pushing the problem back and passing the bill to the next generation." – Houser
As this issue rapidly deteriorates, investors are sounding all alarms. Bitcoin is frequently mentioned as a potential solution in the cryptocurrency space, especially since traditional methods are failing.
Bitcoin, A New Hope in the Debt Debate?
As traditional methods appear ineffective in containing the United States' deepening deficit, Bitcoin is emerging as a plausible solution.
Informally called "digital gold" and steadily increasing in value long-term, Bitcoin is gaining legitimacy as a potential solution as part of a broader strategy to manage growing national debt.
"Since the end of the gold standard, central banks have added gold to their reserves as insurance against rapid legal tender value decline. Extending this strategy to Bitcoin is a logical next step, and early participants will secure the most protection. Today's Bitcoin price does not fully reflect the possibility that sovereign reserves might treat Bitcoin someday as they once treated gold." – Houser, told BeInCrypto.
Various ideas have emerged about effectively utilizing Bitcoin. Some strong supporters propose Bitcoin-enhanced government bonds as an innovative method to lower interest rates, while others suggest directly integrating digital assets into national reserves.
Experts agree that exploring these alternatives is worthwhile, but warn that thorough due diligence is essential.
Weighing Risks and Rewards
Knowing the optimal time to implement a Bitcoin-based strategy for addressing national debt issues is crucial to maximizing benefits.
Nelson believes Bitcoin is an option worth considering, but emphasizes that its price volatility must be carefully evaluated.
"Bitcoin's volatility is not a perfect tool for resolving national debt. Large BTC investments significant enough to make a real difference carry substantial risks. What if prices move unfavorably for the country in the short term? Such a situation could easily surprise the country's debt buyers, potentially forcing them to demand higher interest payments. And possibly create ripples in the broader economy." – he said.
History has already proven that Bitcoin's value tends to rise over time. Waiting for such an extreme measure might not be a bad idea.
"Nevertheless, as Bitcoin matures, its volatility continues to decrease. This makes it more attractive to nations and institutions." – Nelson added.
Moreover, if the United States were to take such a measure, it would immediately trigger a chain reaction.
An Atypical Path Forward
The United States, the world's largest economy and most important financial market, influences every corner of the globe through its actions.
If the US decides to purchase Bitcoin to manage its debt, other countries are likely to adopt a similar approach. However, if this plan negatively impacts the US economic outlook at any point, the repercussions will be felt worldwide.
Nelson believes this is why such measures should not be taken lightly.
"If a major country seriously considers Bitcoin as a solution to global debt issues, it could be a turning point. We have not yet reached that stage, but more investors are viewing Bitcoin as a potential hedge and solution to fiat currency overrun." – he concluded.
These issues have no easy answers. The path the United States chooses will set a precedent for the world. As traditional methods prove insufficient, the discussion has shifted from acknowledging the problem to finding the right solution. Bitcoin consistently emerges as part of that conversation.