Elon Musk Declares The U.S. Dollar ‘A Scam’ Amid Fears Of $33 Trillion U.S. ‘Debt Death Spiral’ As The Bitcoin Price Soars – Forbes


Tesla TSLA billionaire and X (Twitter) owner Elon Musk has weighed in on the current state of the U.S. dollar, calling it a scam.
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Musk was commenting on an X post asking: What’s a scam that’s so normalized we don’t even realize it’s a scam anymore? “Fiat currency,” Musk replied, referring to state-issued money backed by government borrowing rather than a scarce resource like gold or bitcoin.
Over the last week, some fiat currency skeptics have warned soaring U.S. debt could create an inflationary “death spiral” for the U.S. dollar that ultimately pushes up the price of bitcoin.
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Elon Musk has flirted with bitcoin and crypto adoption over the last few years, buying and then … [+] selling billions of bitcoin via his electric car company Tesla and causing wild bitcoin price swings along the way.
The U.S. dollar has faced surging inflationary pressures since sky-high government borrowing through the Covid crisis and lockdowns was used to fuel economic stimulus measures and played havoc with global supply chains.
The Federal Reserve has rapidly hiked interest rates through 2022 and into 2023 in a desperate attempt to stamp out inflation, however, some fear the rising interest on national debt will spur even greater future spending and inflation.
In September, U.S. national debt—the amount of money borrowed by the federal government to cover operating expenses—topped $33 trillion for the first time, according to figures from the U.S. department of the Treasury.
Musk’s U.S. dollar comment was seized upon by many in the bitcoin and crypto community who cheered it as a sign the mercurial Tesla billionaire was returning to bitcoin support.
“Realize that our entire economic system is a shared belief,” bitcoin investor and technology developer Anders Larsson, responded to Musk. “It’s not laws of physics. So other myths are emerging. Neither is an absolute and final truth.”
Others meanwhile joked that Musk’s comment meant he was turning again to meme-based bitcoin rival dogecoin, a cryptocurrency Musk has recently revealed to have been funding the development of.
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The bitcoin price has swung wildly over the last few years, pushed higher by the likes of Elon Musk … [+] and other high-profile investors.
This week, X chief executive Linda Yaccarino is due to meet with seven banks that funded Elon Musk’s takeover of Twitter and its re-brand to X this coming week and will reportedly propose expansion into payments after a leak suggested Musk could turn X into an “updated version of PayPal.”
Rumors and reports have circulated for months that Musk is planning to build X into a finance company, echoing Musk’s original plan for the company X.com he founded in 1999 that merged with online bank Confinity to become PayPal PYPL .
PayPal has this year leaned into bitcoin and crypto, launching its own dollar-pegged stablecoin cryptocurrency after rolling out support for bitcoin, ethereum, litecoin and bitcoin cash in late 2020. PayPal’s support for bitcoin and crypto helped kick off the 2021 bitcoin price bull run that catapulted bitcoin to almost $70,000.


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