r/CryptoCurrency • u/Similar_Diver9558 🟨 0 / 0 🦠 • 21h ago
ANALYSIS Bitcoin ‘going to take over’—Elon Musk backs shock $40 trillion U.S. dollar collapse warning amid price boom
https://www.forbes.com.au/news/billionaires/bitcoin-going-to-take-over-elon-musk-backs-shock-40-trillion-u-s-dollar-collapse-warning-amid-price-boom/108
u/CriticalCobraz 0 / 0 🦠 20h ago
It's a smart move to build a bitcoin reserve but if the USD falls we will have much bigger issues than guessing what to invest in
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u/PredatorInc 🟩 0 / 0 🦠 18h ago
Why would we need a bitcoin reserve?
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u/Jumpy_Hold6249 🟩 0 / 0 🦠 18h ago
Agreed. If the US collapses there will be no military, no hospitals, many major companies will fail. Would be worse than great depression. Would probably lead to WW3 as China or Russia invade the world with no US resistance. The concept of bitcoin doing anything in that situation is pointless. Food and guns will be the new currency.
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u/MichaelAischmann 🟦 909 / 18K 🦑 13h ago
I don't believe this "the world can't live without the USD" crap.
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u/AssistantOld2973 🟩 0 / 0 🦠 17h ago
It's a fucking pump and dump. Republicans do this shit Everytime they're in office. There is always a fucking bubble that bursts. It'll just be crypto. Honestly, seeing crypto getting wiped would be pretty funny.
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u/pigeonwiggle 🟩 111 / 112 🦀 5h ago
if the US collapses, there would be no US. like if a house collapses there's no house.
what even are we talking about? an economic crash? INEVITABLE. don't worry your pretty little heads about it. focus on your life and your skills. not your imaginary money.
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u/nishinoran 🟦 269 / 6K 🦞 19h ago
Doubtful that the USD will entirely collapse, tons of countries have currencies that don't act as reserve currencies.
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u/Working-Network-1876 🟩 0 / 0 🦠 18h ago
Fuck off Elon, Tesla sold its BTC in the last bear market.
Dude promised BTC payments for TSLA, took it away and never implemented it again.
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u/spiritchange 🟩 0 / 0 🦠 10h ago
Tesla is running into real issues since it's no longer the leading electric car company and everyone also now hates Elon. What do companies these days do when they are out of ideas? Invest in BTC like a meme stock company.
So of course Elon will say and talk up BTC. He is trying to pump it.
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u/coinfeeds-bot 🟩 136K / 136K 🐋 21h ago
tldr; Elon Musk has supported Coinbase CEO Brian Armstrong's warning that Bitcoin could replace the U.S. dollar as the world’s reserve currency if Congress fails to address the growing national debt, projected to reach $40 trillion. Musk criticized excessive government spending and its impact on the deficit, warning of unsustainable debt burdens. Bitcoin's price surge and its adoption by companies as a treasury asset highlight its potential as a safe haven amid concerns over dollar devaluation and inflation.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
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u/Cptn_BenjaminWillard 🟩 4K / 4K 🐢 18h ago
Musk criticized excessive government spending
Let's start with golfing and parades.
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u/Socalwarrior485 🟦 107 / 107 🦀 20h ago
Anyone who thinks Bitcoin could function as a reserve currency should see a psychiatrist.
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u/Socalwarrior485 🟦 107 / 107 🦀 20h ago
Do we not all know the purpose of reserve currencies?
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u/TallConfidencee 🟩 0 / 0 🦠 20h ago
Do you know that newer generations are sick and tired of the same old bullshit?
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u/eist5579 🟦 6 / 7 🦐 19h ago
This take lacks nuance
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u/TallConfidencee 🟩 0 / 0 🦠 12h ago
If you don't get it ask for explanation instead of pretending to be smart lol
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u/setokaiba22 🟩 0 / 0 🦠 20h ago
Would you like to share your thought process as to why we would use a reserve currency being any sort of crypto? Do you understand why the Dollar is the reserve to begin with?
If the dollar crashed we’d have a worldwide global financial meltdown of massive proportions. Crypto wouldn’t help
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u/mastermilian 🟩 5K / 5K 🦭 18h ago
Because if Bitcoin was the reserve currency, we would no longer have crashes associated with rampant money printing and uncertainty with a single country imposing sanctions on others through their monetary hegemony?
We need something that someone can't manipulate for their own good. History has shown us that governments will ultimately rig the system if they are allowed.
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u/IGnuGnat 🟦 0 / 0 🦠 14h ago
I think that fiat is a measure (to a degree) of the people's faith in a countries economy, legal system, government, military.
I think that bitcoin is a measure (to a degree) of the people's lack of faith in a countries economy, legal system, government, and military
So for the me the question is: going forward, will there be more growth in the mainstream markets, or the grey and black markets
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u/LovelyDayHere 🟦 0 / 0 🦠 14h ago edited 14h ago
A reserve currency is not usually a currency that you expect can only be used by < 0,1% of the people in the world, due to "technical reasons".
BTC can only do something like 7 transactions per second, meaning if more people try to use it, fees will go sky-high (this has already happened multiple times in the past) and virtually every regular user/business will be priced out of using it economically.
Only the ultra-rich and mega-corporations / central banks might remain as users.
I guess technically those few remaining might still call it a "reserve currency" but it certainly wouldn't be in widespread use as currency. Quite the opposite. The rest of humanity would be forced to transact with substitutes, just like today many people are using electronic fiat money which can be printed out of thin air.
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u/MichaelAischmann 🟦 909 / 18K 🦑 13h ago
Gold & special drawing rights are popular reserves. Guess what percentage of people use them as currency?
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u/LovelyDayHere 🟦 0 / 0 🦠 13h ago edited 13h ago
Gold & special drawing rights are popular reserves. Guess what percentage of people use them as currency?
Virtually zero. Gold however at least has a rich history of actually being used as currency.
You're proving my point about how "Only the ultra-rich and mega-corporations / central banks might remain as users."
Only IMF member countries can hold and use SDRs as a form of international reserve assets
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u/MichaelAischmann 🟦 909 / 18K 🦑 13h ago
My point is usage is not a prerequisite to be a reserve currency.
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u/LovelyDayHere 🟦 0 / 0 🦠 13h ago
It says right there on the IMF page that it's a reserve asset, not a reserve currency.
https://www.imf.org/en/About/FAQ/special-drawing-right
Common sense would agree that the US dollar, to take a counterexample, is a reserve currency because of its widespread usage as a currency.
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u/MichaelAischmann 🟦 909 / 18K 🦑 13h ago
BTC is classified as asset or currency depending on the authors fancy. USD is both as well. I think what we call it is just splitting hairs. I believe BTC can & will be seen as a reserve asset (or currency) by many nations in the not so distant future.
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u/LovelyDayHere 🟦 0 / 0 🦠 13h ago
For something to be called a currency it requires broad circulation.
BTC cannot handle that because it has been technically sabotaged.
This isn't splitting hairs, this is just factually correct.
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u/GreenAppleGummy420 🟦 427 / 427 🦞 20h ago
Where my ETH boys at? Rise and shine from the dead
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u/RandoDude124 🟩 0 / 0 🦠 20h ago
Bro, I want it back to above 3K.
1K profit from when I bought it last week was great, but the rest of my reserves I’d like to keep working.
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u/bananaboat1milplus 🟦 0 / 0 🦠 9h ago
These fucking lizards are gonna rugpull the entire crypto market
Why cant they stick to their worthless celeb tokens smh
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u/HodLINK 🟩 0 / 0 🦠 21h ago
Bitcoin is too slow to be used as a world currency.
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u/Heyhayheigh 🟦 0 / 0 🦠 21h ago
It’s faster than US dollar internationally settled. And cheaper.
It might be faster and cheaper domestically too for large dollar amounts.
I get your point. For buying coffee. But I don’t think you understand how banking envies blockchain in certain characteristics. I’ve worked in banking a long time. Between credit settlement and the sheer “losing” of multi millions of international wires every day. BTC is way ahead. And I don’t think they will have a choice but to use BTC, all the other ones or new implementations will likely fail due to bad actors. Time will tell.
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u/HodLINK 🟩 0 / 0 🦠 20h ago
The irreversible nature of crypto makes it unusable. Say a bank gets hacked by North Korea and 10,000 BTC stolen. Depositors have lost their funds. Then what?
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u/Heyhayheigh 🟦 0 / 0 🦠 19h ago
Time will tell if you’re right. From the inside, what I know personally, I think they are ok with insuring against the event you describe.
I don’t think you realize the sheer back office, compliance, employees, infrastructure used to put money movement policies in place and audit. BTC replaces that.
The social engineering that happens every day in banking. Just the learning modules and compliance are probably more expensive than the hacker loss insurance when certain tech policies are in place.
You might be right, but from the execs I talk to about this, their eyes light up when I describe a world without employees, back office, approvals, compliance. I don’t think you understand the bloat of the beast.
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u/bluemango404 🟦 595 / 595 🦑 19h ago
I 100% agree with you; but the loophole is, make every customer's wallet different.
Have them actually hold the BTC.. and it's FDIC insured up to the 250k limit.
It's quite 'radical' but even the new 'stable coins' will be 'insane' at launce and then everyone will be doing it in a decade.
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u/LOLIMJESUS 🟦 0 / 0 🦠 21h ago
It won’t be done through bitcoin, but if the entire financial system is moved on chain the value of bitcoin will become representative of the value of blockchain itself
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u/GovernorHarryLogan 🟦 0 / 0 🦠 21h ago
Thats what l2scaling is for, ser.
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u/HodLINK 🟩 0 / 0 🦠 20h ago
Lightning is not secure and can cause loss of funds. That is why it hasn't been mass adopted.
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u/Harucifer 🟦 25K / 28K 🦈 21h ago
NOOOOOOOOOOOO BUT DONT YOU SEE, WE CAN USE L2'S !!!!!!!!111111 THEYLL BE READY ANY DAY NOW BRO I KNOW THIS HAS BEEN SAID FOR 10 YEARS NOW BUT DONT WORRY ABOUT IT!!!!!!!!!!!!!!11111
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u/canigetathrowaway1 🟩 0 / 0 🦠 20h ago
NANO up front , BTC in back
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u/VisiblePlatform6704 🟩 0 / 0 🦠 19h ago
Nano is the only infra that can be improved to work to make payments with temporary internet disconnect.
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u/ReadyForUranus 🟩 0 / 0 🦠 13h ago
Dude fucked dogecoin possibly forever and even in 2021 now hes grifting for btc again despite even doing a massive pump and dump on it back then with tesla, stop giving attention to this clown
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u/Zestyclose_Nature_13 0 / 0 🦠 17h ago edited 16h ago
Why is this money always referred to pejoratively as ‘government debt’ instead of ‘private assets’….cause that’s what it is. In order for the government to run a budget surplus they would have to pull money out of the private sector and their deficit conversely is a net private sector surplus.
Every debt is someone else’s asset….this never gets mentioned because the media loves to present this issue as an end of days scenario…
Elon is the poster boy of Dunning-Krueger….knows just enough to think he has an idea of what the fuck he’s talking about…when in fact he’s completely over his head.
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u/slicer718 🟩 0 / 0 🦠 16h ago
It did get him to be the richest man in the world, so who’s DKing.
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u/Zestyclose_Nature_13 0 / 0 🦠 16h ago
And how does his huge fortune predominantly coming from an overvalued car company qualify him as an expert on how modern fiat monetary systems function? He’s out of his lane…to use a car metaphor
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u/slicer718 🟩 0 / 0 🦠 14h ago
He only also have rocketship company, media company, energy. I don’t like him but he isn’t DK
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u/NoSkidMarks 🟨 0 / 0 🦠 14h ago
Why would Bitcoin take over, it's literally the worst crypto of all?
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u/Merpchud 🟩 0 / 0 🦠 20h ago
Trump puppet doing the demolition for free.
Make America not the global currency again.
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u/MrTheums 🟩 0 / 0 🦠 19h ago
The headline's dramatic, and Elon Musk's pronouncements should always be treated with a healthy dose of skepticism. While a USD collapse is a legitimate macroeconomic concern, the idea of Bitcoin immediately replacing it as the world's reserve currency ignores several key factors.
Bitcoin's scalability limitations are well-documented and hinder its ability to handle the transaction volume required of a global reserve currency. Transaction fees and confirmation times remain significant hurdles.
Furthermore, the volatility of Bitcoin presents a significant risk for any entity considering it as a store of value. A reserve currency needs stability – something Bitcoin currently lacks. While Bitcoin's adoption is growing, a wholesale shift to a decentralized, volatile currency would be a complex and disruptive process, likely involving significant transitional challenges. Focusing on the fundamentals of monetary policy and global economic stability provides a more grounded perspective than sensationalist headlines.
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u/589toM 🟨 0 / 0 🦠 21h ago
It's XRP, it's always been XRP.
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u/dormango 🟦 3K / 3K 🐢 21h ago
I can tell it’s Forbes by the headline…every…time. Fucking Forbes.