Recent concerns about the U.S. fiscal situation are reigniting discussions about Bitcoin’s potential to serve as a hedge against financial instability, particularly as a reserve currency. Elon Musk, known for his outspoken views on government spending, believes a new bill will cause Americans to face bankruptcy and further burden national debt by $2.5 trillion over the next decade. This has spurred many experts like Arthur Hayes, Brian Armstrong of Coinbase, and Robert Kiyosaki to believe that Bitcoin could become the world’s reserve currency. These predictions come at a time when U.S. public debt has reached a staggering $36.9 trillion, sparking concerns about a potential devaluation of the US dollar and rising inflation. Brian Armstrong, Coinbase’s founder, believes the growing fiscal debt could push Bitcoin as a viable alternative to the existing financial system. Arthur Hayes, known for his expertise in cryptocurrency markets, echoes this sentiment by encouraging users to buy Bitcoin. The surge in Bitcoin’s value coincides with recent developments on the spending bill’s passage in May, particularly when both gold and Bitcoin saw a spike in value during that time, indicating a risk-off sentiment from investors and a potential boost for assets that could be considered safe havens against financial turmoil. Interestingly, despite gold potentially outperforming Bitcoin in terms of ETF inflows in the first half of 2025, analysts predict Bitcoin might eventually surpass gold in the long term. However, this potential dominance is countered by concerns raised by analyst Willy Woo regarding the continued selling trend from Bitcoin’s long-term holders (LTH).