Musk predicts: $38.3 trillion "crisis" may trigger a surge in Bitcoin prices

[Musk Predicts: $38.3 Trillion “Crisis” Could Trigger Bitcoin Price Surge] On December 2, news reported by Forbes states that Elon Musk has once again issued a warning, claiming that the U.S. is rapidly heading towards a potential “debt crisis” that could trigger significant fluctuations in Bitcoin prices. Traders are preparing for major policy changes that the Fed may bring in December; in this context, Musk predicts that in the future, “currency as a concept will no longer exist,” and energy will become the only “true currency.” In an interview with Nikhil Kamath, Musk stated, “This is why I say Bitcoin is based on energy; after all, you cannot create energy through legislation.” He also mentioned, “The U.S. is significantly increasing the money supply through a deficit of about $2 trillion.” Musk further predicts that within three years, the development of artificial intelligence will enable the growth rate of goods and services output to surpass the inflation level. “About three years from now, the growth rate of goods and services output will exceed the growth rate of money supply. At that time, deflation may occur, interest rates may drop to zero, and the debt problem will be much smaller than it is now.” Musk once aided Trump's return to the White House through campaign rallies and warnings about the rising debt scale in the U.S. (which has now exceeded $38 trillion), but his relationship with Trump deteriorated sharply after Trump failed to control government spending. Although Musk's support for Bitcoin and cryptocurrencies is not as strong as it was at the peak during the COVID-19 pandemic, he continues to support Bitcoin and Dogecoin. After leaving the White House, Musk stated that the “American Party” he advocates will be more inclined to choose Bitcoin over the U.S. dollar, calling the dollar and other non-asset-backed currencies “hopeless.”