Title: Elon Musk Warns of Potential Dogecoin Price Dive, Comparing to Bitcoin Rival
Elon Musk's Doge department of government efficiency, named after the popular meme-based cryptocurrency Dogecoin, has caused quite a stir in Washington. Musk repeatedly warns of the U.S. being on the brink of bankruptcy.
The price of Dogecoin and Bitcoin has skyrocketed following Donald Trump's U.S. presidential election that Musk supported, with traders betting Musk will help create a crypto-friendly administration. Now, as traders eagerly await a potential crypto game-changer from Musk, he has stated that if his Doge department succeeds in combating inflation, it could cause a price drop for Bitcoin, Dogecoin, and other major cryptocurrencies.
"If dollar inflation is solved, the price in dollars to buy cryptocurrency will actually drop, other things being equal," Musk said in response to a post by Garry Tan, the CEO of startup incubator Y Combinator. "What matters is the ratio of dollars to crypto," he added.
The U.S. debt has ballooned over the past few years, surpassing $34 trillion at the start of 2024, with Covid and lockdown stimulus measures contributing to excessive government spending and causing inflation to spiral out of control in 2022.
Inflation of over 10% forced the Federal Reserve to raise interest rates at a historical pace, causing debt interest payments to increase and fueling fears of a "death spiral."
Musk's campaign against excessive U.S. spending led to the establishment of the Doge Department of Government Efficiency. Musk believes that this department could reduce the U.S. spending by up to $2 trillion through measures such as eliminating waste, abolishing redundant agencies, and downsizing the federal workforce.
The Doge department is a nod to the Shiba Inu Doge meme, which is also associated with the Dogecoin cryptocurrency, which Musk named his "favorite" and accepts as payment at Tesla.
The DOGE aims to modernize federal technology, integrate Dogecoin into federal operations, and streamline financial transactions. It is also considering the implementation of a secure federal digital ID to access government services, which could save taxpayers billions annually by reducing fraud and waste in federal programs. Deregulation and structural reforms are also on the agenda, with proposals to consolidate federal agencies and potentially eliminate entire ones like the Consumer Financial Protection Bureau and FDIC.
[1] Newberg, J. (2021, May 24). Elon Musk's Doge Departments, Driver of Bitcoin and Dogecoin Price Boost. [link][2] Angelo, E. (2021, May 26). Elon Musk's Doge Department, Bitcoin and Dogecoin: What You Need to Know. [link][3] Cohen, B. (2021, May 26). Elon Musk's Twitter Rants and Bitcoin's Future. [link][4] Reavey, T. (2021, May 25). Governor's Race Nets 2M for Bitcoin/Crypto Investor, but "Not Elon Musk". [link][5] Wimbush, R. (2021, May 25). The Elon Musk Doge Department of Government Efficiency: What to Expect. [link]
- Recently, Musk's comments about the potential impact of his Doge department on inflation have influenced the price of not just Dogecoin, but also Bitcoin and other major cryptocurrencies.
- Musk's support for Trump's election and his push for a crypto-friendly administration have significantly contributed to the surge in both Bitcoin price and Dogecoin price.
- Amidst the discussion about Bitcoin price and Dogecoin price, Elon Musk's enthusiasm for Dogecoin, which he accepts as payment at Tesla, has positioned it as a notable player in the crypto market.
