{"id":6753,"date":"2025-01-09T05:01:51","date_gmt":"2025-01-09T05:01:51","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=6753"},"modified":"2025-01-09T05:01:51","modified_gmt":"2025-01-09T05:01:51","slug":"elon-musk-warns-his-plans-for-dollar-could-slow-bitcoins-price-growth-heres-why","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=6753","title":{"rendered":"Elon Musk Warns His Plans For Dollar Could Slow Bitcoin\u2019s Price Growth: Here\u2019s Why"},"content":{"rendered":"<div>\n<p>Musk will head the newly-created White House advisory office named D.O.G.E.<\/p>\n<p>It\u2019s a play on the Texas techno king\u2019s love for Dogecoin and an acronym that stands for <a href=\"https:\/\/cryptopotato.com\/trumps-d-o-g-e-promises-to-slash-bureaucracy-heres-what-you-need-to-know\/\" data-wpel-link=\"internal\">Department of Government Efficiency<\/a>.<\/p>\n<h2>DOGE Aims to Whip Inflation Now<\/h2>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">We either fix this or go de facto bankrupt <a href=\"https:\/\/t.co\/hmjpx6uBfd\" data-wpel-link=\"external\" target=\"_blank\">https:\/\/t.co\/hmjpx6uBfd<\/a><\/p>\n<p>\u2014 Elon Musk (@elonmusk) <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1872383715583873249?ref_src=twsrc%5Etfw\" data-wpel-link=\"external\" target=\"_blank\">December 26, 2024<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The magnetic tech engineer has advised the once and future president Trump broadly on a number of matters relating to technology, business, and public policy.<\/p>\n<p>His ideas for more government efficiency could help cut back overspending in Washington, DC, slow the growth in the federal budget deficit, and help curb rising prices across the economy due to inflation.<\/p>\n<p>High deficits <a href=\"https:\/\/www.nytimes.com\/2024\/04\/29\/us\/politics\/fed-inflation-deficit.html\" data-wpel-link=\"external\" target=\"_blank\">cause inflation<\/a> as government spending gooses the velocity of money in the economy and drives up prices. Meanwhile, new dollars created by the Federal Reserve and loaned to banks to buy the government\u2019s debt inflate the dollar and increase prices as well.<\/p>\n<p>One recent study by the Princeton University Department of Economics <a href=\"https:\/\/economics.princeton.edu\/wp-content\/uploads\/2024\/08\/Fiscal_Inflation_Draft.pdf\" data-wpel-link=\"external\" target=\"_blank\">estimates<\/a> US budget deficits in 2021 caused about 30% of the US dollar inflation in 2021-22.<\/p>\n<p>Rising prices as a result of big spending in Washington start in financial markets, then ripple through the economy until they push up prices at the gas pump and grocery checkout.<\/p>\n<h2>New Headwind for Bitcoin\u2019s Price, Musk Warns<\/h2>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">If dollar inflation is solved, the price in dollars to buy cryptocurrency will actually drop, other things being equal.<\/p>\n<p>What matters is the ratio of dollars to crypto.<\/p>\n<p>\u2014 Elon Musk (@elonmusk) <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1876567714594169283?ref_src=twsrc%5Etfw\" data-wpel-link=\"external\" target=\"_blank\">January 7, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The effect is especially dramatic in crypto markets and shows up conspicuously in Bitcoin\u2019s price and that of other major token pools, such as ETH, XRP, SOL, and DOGE.<\/p>\n<p>In fact, many cryptocurrency investors say they favor crypto assets like Bitcoin, Ripple, and Dogecoin as a shelter for their savings from dollar inflation.<\/p>\n<p>While not all experts agree that Bitcoin is a hedge for dollar inflation, over any four-year period, money held as BTC has markedly increased in buying power while the inflating greenback loses its purchasing power parity.<\/p>\n<p>But Musk warned in an X reply thread on Tuesday that if the D.O.G.E. office\u2019s plans are successful, it will represent a headwind for Bitcoin\u2019s price, not support for growth.<\/p>\n<p>That\u2019s because lower deficits and less inflation will slow the increase in prices across the board, including in traditional financial markets like stocks and Internet financial instruments like Bitcoin.<\/p>\n<p><a href=\"https:\/\/cryptopotato.com\/bitcoin-price-analysis\/\" data-wpel-link=\"internal\">Bitcoin\u2019s price<\/a> corrected to a low of $94,600 on Wednesday after losing the $100,000 mark on Tuesday.<\/p>\n<p>The post <a href=\"https:\/\/cryptopotato.com\/elon-musk-warns-his-plans-for-dollar-could-slow-bitcoins-price-growth-heres-why\/\" rel=\"nofollow\">Elon Musk Warns His Plans For Dollar Could Slow Bitcoin\u2019s Price Growth: Here\u2019s Why<\/a> appeared first on <a href=\"https:\/\/cryptopotato.com\/\" rel=\"nofollow\">CryptoPotato<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Musk will head the newly-created White House advisory office named D.O.G.E. It\u2019s a play on the Texas techno king\u2019s love for Dogecoin and an acronym that stands for Department of Government Efficiency. DOGE Aims to Whip Inflation Now We either fix this or go de facto bankrupt https:\/\/t.co\/hmjpx6uBfd \u2014 Elon Musk (@elonmusk) December 26, 2024 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-6753","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/6753","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6753"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/6753\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}