• Elon Musk critiques the US debt ceiling and Trump’s “One Big Beautiful Bill,” calling it a ticking “debt bomb.”
• Bitcoin gains attention as a potential solution to the growing US national debt due to its stability and long-term growth.
• Experts warn of Bitcoin’s volatility but acknowledge its potential as a hedge against inflation and sovereign debt issues.

Elon Musk has once again turned to social media to criticize the Trump administration’s handling of the national debt. The Tesla founder has particularly called out the recently signed One Big Beautiful Bill Act as crucial in further amplifying an already alarming deficit. 

Since traditional methods are proving ineffective, experts from Bitwise and Sentora suggest that alternatives like Bitcoin deserve consideration for reducing interest rates and curbing excessive spending.

Musk’s Debt Outcry: From DOGE to America Party

A lot has happened with Elon Musk over the past few days. The former head of the Department of Government Efficiency (DOGE), the pseudo-federal agency responsible for reducing government overspending, kicked off July by going on X to rant about the nation’s spending habits.

Musk’s most recent posts build on previous ones in which he explicitly called out President Trump’s One Big Beautiful Bill, which was signed into law this week. He also said the bill would increase the debt ceiling by five trillion dollars.

Amid an ongoing exchange of affronts between Elon Musk and Trump over the subject, the Tesla founder decided to form his own political space: the America Party.

Musk stated that the party’s goal is to “give you back your freedom” and address what he views as a “one-party system” regarding wasteful spending and graft. His poll on X showed significant support for a new political party.

What’s certain, however, is that beyond the political spectacle, the discussion around the United States’ national fiscal health is constantly being refloated for its urgency.

The Looming “Debt Bomb” and Market Warnings

The United States faces a serious, ongoing fiscal problem that’s reaching alarming proportions. Instead of controlling the growing deficit, lawmakers keep raising the ceiling, which Musk calls “a debt bomb ticking.”

Though policymakers have done little to counter this chronic issue, the market is increasingly speaking out against it.

“‭Debt‬‭ is‬‭ climbing‬‭ fast,‬‭ interest‬‭ payments‬‭ are‬‭ now‬‭ the‬‭ government’s‬‭ largest‬‭ single‬‭ line‬‭ item,‬‭ and,‬‭ worst‬‭ of‬‭ all,‬‭ there’s‬‭ no‬‭ credible‬‭ plan‬‭ to‬‭ rein‬‭ it‬ in.‬.. and,‬‭ as‬‭ interest‬ payments‬‭ continue‬‭ to‬‭ snowball,‬‭ the‬‭ notion‬‭ that‬‭ ‘something’s‬‭ got‬‭ to‬‭ give’ is‬‭ gaining‬ traction,” ‭Danny Nelson, research analyst at Bitwise, told vipkhoone.

If the current situation continues, experts forecast surging inflation and a further decline in the dollar’s value. Even though there are clear, established ways to fix this, no one seems willing to use them.

Political Aversion to Debt Solutions

Traditional methods for addressing rising debt, 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 only‬‭ a‬‭ few‬‭ brutal‬‭ ways‬‭ out‬‭ of‬‭ a‬‭ debt‬‭ spiral—and‬‭ war‬‭ tops‬‭ the‬‭ list.‬‭ Short‬‭ of‬‭ that,‬‭ Washington‬‭ could‬‭ slash‬‭ spending‬‭ on‬‭ big-ticket‬‭ items‬‭ like‬‭ infrastructure,‬‭ Social‬‭ Security,‬‭ and‬‭ defense,‬‭ or‬‭ it‬‭ could‬‭ impose‬‭ steep‬‭ tax‬‭ hikes.‬‭ Both‬‭ fixes‬‭ are‬‭ political‬‭ poison,‬‭ especially‬‭ in‬‭ a‬‭ democracy‬‭ where‬‭ voters‬‭ recoil‬‭ at‬‭ benefit‬‭ cuts‬‭ and‬‭ higher‬‭ taxes,” Patrick Heusser, Head of Lending and TradFi at‬‭ Sentora, explained.

Continuing with a now well-established tradition, lawmakers have opted for the back-door option: brushing the matter under the carpet for the future leaders of the United States to deal with.

“With‬‭ no‬‭ painless‬‭ option‬‭ on‬‭ the‬‭ table,‬‭ we‬‭ keep‬‭ doing‬‭ what‬‭ we‬‭ do best: kick the can down the road and pass the bill to the next generation,” ‬Heusser added.

As this problem continues to snowball in steep decline, investors are sounding every available alarm. Bitcoin is frequently highlighted within crypto circles as a potential solution to contain the issue, particularly since traditional methods are failing.

Bitcoin: A New Hope in the Debt Debate?

Since traditional methods seem futile in containing the United States’ deepening deficit, Bitcoin has surfaced as a plausible solution.

Given its unofficial status as “digital gold” and its consistent long-term appreciation, Bitcoin is gaining legitimacy as a potential, albeit partial, solution within a broader strategy to manage the escalating national debt.

“Since‬‭ the‬‭ end‬‭ of‬‭ the‬‭ gold‬‭ standard,‬‭ central‬‭ banks‬‭ have‬‭ routinely‬‭ added‬‭ gold‬‭ to‬‭ their‬‭ reserves‬‭ as‬‭ insurance‬‭ against‬‭ sharp‬‭ fiat-currency‬‭ depreciation.‬‭ Extending‬‭ that‬‭ playbook‬‭ to‬‭ Bitcoin‬‭ is‬‭ a‬‭ logical‬‭ next‬‭ step—and‬‭ early‬‭ movers‬‭ would‬‭ lock‬‭ in‬‭ the‬‭ most‬‭ protection,‬‭ because‬‭ today’s‬‭ Bitcoin‬‭ price‬‭ still‬‭ doesn’t‬‭ fully‬‭ reflect‬‭ the‬‭ chance‬‭ that‬‭ sovereign reserves will one day treat it the way they already treat gold,” Heusser told.

Various ideas have emerged regarding how to leverage Bitcoin effectively for this purpose. Some staunch advocates have proposed Bitcoin-enhanced treasury bonds as an innovative way to lower interest rates, while others suggest directly integrating the digital asset into national reserves.

‭While experts agree that exploring such an alternative is worthwhile, they caution that thorough due diligence is essential.

Weighing the Risks and Rewards

Knowing the optimal time to implement a Bitcoin-based strategy to address the national debt problem is crucial for maximizing benefits.

While Nelson believes Bitcoin is an option worth considering, he emphasizes that its price swings must be carefully weighed.

“‬Bitcoin’s‬‭ volatility‬‭ makes‬‭ it‬‭ an‬‭ imperfect‬‭ device‬‭ for‬‭ addressing‬‭ a‬‭ nation’s‬‭ debt.‬‭ Any‬‭ investment‬‭ in‬‭ BTC‬‭ large‬‭ enough‬‭ to‬‭ make‬‭ a‬‭ real‬‭ difference‬‭ comes‬‭ with‬‭ sizable‬‭ risks.‬‭ What‬‭ if‬‭ the‬‭ price‬‭ moves‬‭ against‬‭ the‬‭ country‬‭ in‬‭ the‬‭ short‬‭ term?‬‭ Such‬‭ a‬‭ situation‬‭ could‬‭ easily‬‭ spook‬‭ buyers‬‭ of‬‭ that‬‭ country’s‬‭ debt,‬‭ prompting‬‭ them‬‭ to‬‭ demand‬‭ higher‬‭ interest‬‭ payments‬– and perhaps sending ripples through the broader economy,” he said.

History has already proven that Bitcoin’s value rises over time. Waiting to take such a drastic move may not be such a bad idea.

“‬All‬‭ that‬‭ said,‬‭ as‬‭ bitcoin‬‭ matures‬‭ its‬‭ volatility‬‭ continues‬‭ to‬‭ fall.‬‭ That‬‭ makes‬‭ it‬‭ more‬‭ appealing‬‭ to‬‭ nation-states‬‭ and‬‭ institutions,” Nelson added.

Besides, if the United States were to make such a move, it would immediately unleash a chain reaction.

The Unconventional Road Ahead

The United States, as the world’s largest economy and most crucial financial market, inevitably impacts every corner of the globe through the actions it does –and doesn’t– take.

Should it decide to purchase Bitcoin to manage its debt, other countries would likely adopt a similar approach. However, if this plan were to negatively impact the US’s economic outlook at any stage, the repercussions would also be felt worldwide.

Nelson believes this is all the more reason why such a move shouldn’t be taken lightly.

“If‬‭ one‬‭ major‬‭ country‬‭ does‬‭ take‬‭ a‬‭ serious‬‭ swing‬‭ at‬‭ Bitcoin‬‭ as‬‭ a‬‭ solution‬‭ to‬‭ global‬‭ debt‬‭ concerns‬‭ –and‬‭ we‬‭ believe‬‭ that‬‭ is‬‭ a‬‭ possibility‬‭–‭ that‬‭ could‬‭ be‬‭ the‬‭ tipping‬‭ point.‬‭ While‬‭ we’re‬‭ not‬‭ there‬‭ yet,‬‭ more‬‭ investors‬‭ are‬‭ turning‬‭ to‬‭ Bitcoin‬‭ as‬‭ a‬‭ potential‬‭ hedge‬‭ and‬‭ solution‬‭ to‬‭ runaway‬‭ fiat‬‭ currencies,” he concluded.

Such a problem has no easy answers, and the United States’ chosen path will set a global precedent. As traditional methods prove insufficient, the debate has shifted from acknowledging the problem to identifying the right solution. Bitcoin consistently emerges as part of that conversation.