The Inside Story of the Public Feud Between Musk and Trump and Its Impact on the Crypto World!
Musk and Trump have recently had a public falling out, and the scene is quite intense. On the surface, it appears to be a debate over a financial bill involving 4 trillion dollars, but at the root, it’s really about two individuals who couldn’t agree on how to split the benefits and profits, leading to a conflict.
Musk’s anger stems from three main reasons:
1. This new bill cuts Tesla's government subsidies, directly threatening his electric vehicle business;
2. The bill prints 4 trillion dollars, causing a sudden increase in the government’s fiscal deficit by 2.4 trillion;
3. His political allies have been cleared out by Trump’s side, causing his political coalition to collapse.
These two used to have a good relationship; Trump even helped Musk out on Twitter before. Now their fallout is as quick as a change of face. What’s even more absurd is that on the Republican side, some are actually calling Musk a Biden plant! This plot development is more dramatic than a movie.
The impact of this on the crypto world, in my opinion, can be divided into three stages:
Short-term: Beware of panic selling!
If Tesla's stock price plummets, Bitcoin is likely to follow suit. Many investment firms are very anxious right now, fearing that Musk might be forced to sell his Bitcoin for cash to save the company.
Mid-term: Dollar collapse, Bitcoin surge!
The 4 trillion deficit hole is too large, equivalent to giving every American an extra 12,000 dollars. The more money printed, the less it’s worth; Bitcoin, which hedges against inflation, will become highly sought after. Think about the global monetary easing in 2020, when Bitcoin skyrocketed from 10,000 to 60,000; I feel history is about to repeat itself!
Long-term: Who wins decides the fate of the crypto world:
If Musk wins: then his promoted Dogecoin and his X platform payment might take off, and various meme coins will follow suit and skyrocket;
If Trump wins: don’t just look at his verbal support for cryptocurrencies; if he gets into power, the SEC’s strict regulations could likely suppress and eliminate small coins.
As these wealthy elites engage in their feuds, we small retail investors should remember one core principle: when the broader environment is unstable, hold onto solid assets like Bitcoin; when the market is good, we can trade meme coins for some profit. Everything else is just pointless hustle.
