Coinbase’s CEO Brian Armstrong is sounding the alarm, suggesting that Bitcoin might just swoop in to become the world’s next reserve currency, unless Congress gets its act together to fix the ballooning $37 trillion debt crisis. He’s not playing around, either.
“I love Bitcoin, but let’s not forget a strong America is key for global stability,” Armstrong tweeted on Tuesday. “We’ve got to get our finances in check.”
If the electorate doesn't hold congress accountable to reducing the deficit, and start paying down the debt, Bitcoin is going to take over as reserve currency.
— Brian Armstrong (@brian_armstrong) June 4, 2025
I love Bitcoin, but a strong America is also super important for the world. We need to get our finances under control. https://t.co/aeBE7pUuHo
Armstrong's concerns about the debt crisis come right after the House Republicans pushed through the Trump-backed “big, beautiful bill” in May. This bill extends tax cuts, boosts military spending, and slashes Medicaid, food aid, and clean energy programs, definitely not a recipe for fiscal health.
As the fiscal pressure mounts, Bitcoin, which emerged from the 2008 financial disaster, is quickly becoming the financial safe haven of choice. With its limited supply and immunity to inflation, Bitcoin is attracting attention from institutional investors and even state governments.
U.S. states are no longer just competing with each other in the Bitcoin race. New Hampshire Rep. Keith Ammon pointed out that they're up against a federal government that’s running out of options but to print more money to cover its debts.
“The federal government’s actions are eroding the value of the dollar, and Bitcoin could be the safeguard to protect state finances,” said Ammon.
Nobel Economists and Musk Slam the U.S. Bill Amid Growing Bitcoin Demand
It’s not just the political side of things. Six Nobel Prize-winning economists, including heavyweights like Paul Krugman and Joseph Stiglitz, recently warned that the bill’s design would spike inequality and potentially drive public debt by over $3 trillion, if its provisions become permanent.
Even Elon Musk, CEO of Tesla and the former king of D.O.G.E, tore into the bill on Tuesday, calling it a “massive, outrageous, pork-filled Congressional spending bill” and an outright “disgusting abomination.”
It will massively increase the already gigantic budget deficit to $2.5 trillion (!!!) and burden America citizens with crushingly unsustainable debt https://t.co/dHCj3pprJO
— Elon Musk (@elonmusk) June 3, 2025
The Senate’s next move could have far-reaching consequences, not just fiscally but geopolitically, critics argue. With global efforts to de-dollarize, the growing allure of Bitcoin might be the catalyst for a major shift.
“There’s a big disconnect in the U.S.,” said Komodo Platform CTO Kadan Stadelmann. “This is exactly why Bitcoin was created back in 2008—standing against fiat currency.”
Stadelmann, ever the realist, added that traditional currencies like the U.S. dollar are a key part of the problem, contributing to the hundreds of billions of dollars in debt the U.S. racks up annually.
As debt continues to climb, Stadelmann sees Bitcoin as a lifeline, a “safe haven away from the inflationary monetary system” that’s clearly running out of steam.
“If the debt keeps piling up, it could lead to a dollar collapse,” he warned. “And when that happens, expect an avalanche of people flocking to Bitcoin, possibly triggering a supply shortage.”
Gunel Ismayilova
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource, and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice. HODL FM strongly recommends contacting a qualified industry professional.
