Coinbase CEO Brian Armstrong has shown strong support for the DOGE initiative, describing it as a “once-in-a-lifetime opportunity” to enhance economic freedom in the United States. In his November 17 post on X, Armstrong emphasized that excessive government spending is a significant problem in the U.S. economy and suggested capping federal expenditure at 10% of the nation’s GDP.
Armstrong believes that with stricter budget controls, the U.S. economy could experience healthier growth without being weighed down by fiscal burdens. Armstrong also proposed innovative ideas to align incentives towards long-term fiscal discipline.
For instance, he floated the idea of a constitutional amendment to limit government spending or creating a U.S. sovereign wealth fund, where every citizen has a stake. This fund would allow budget surpluses to be distributed as dividends to citizens, encouraging them to have a personal interest in the nation’s fiscal health.
Trump’s Bold Move for a More Efficient Government
President-elect Donald Trump recently announced a new department called the “Department of Government Efficiency” or DOGE, surprising many. This department is designed to streamline federal spending and cut back on regulations that are seen as barriers to economic growth.
By creating DOGE, Trump hopes the government can reduce the budget burdens that often slow growth and build a more efficient, responsive system for public needs.
To lead this new department, Trump chose two prominent figures, Elon Musk and Vivek Ramaswamy, both known for their backgrounds in technology and economic deregulation.
Musk, with his track record in tech, and Ramaswamy, a strong advocate for reducing government interference, are expected to bring a fresh vision to government management.
Why Was DOGE Created?
Trump created DOGE to tackle issues that he believes hinder the federal government’s effectiveness, specifically inefficient spending and overregulation. In fiscal year 2024, the U.S. government spent $6.75 trillion, an increase of 10%, or $617 billion, compared to the previous year.
Trump believes that this level of spending could highlights the need for a major shift in how the country’s finances are managed. He thinks that excessive bureaucracy and complicated regulations have made the government less responsive to public needs and more of a drain on the budget.
With DOGE, Trump plans to eliminate what he sees as wasteful spending and overhaul regulations that he believes are excessive.
“The government should focus on core priorities that serve the people, not allow budget waste to continue,” Trump said.
DOGE is expected to bring spending back in line with essential priorities and ease the pressure on the economy. By making the government more efficient, it will be better prepared to face future challenges and secure long-term financial stability.
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Why is it Called DOGE?
The name DOGE was inspired by Dogecoin, a popular cryptocurrency supported by Elon Musk. While there’s no direct link to Dogecoin, the name suggests innovation and change, much like how Dogecoin grew from an internet joke to a global phenomenon. DOGE has a positive association and reflects a desire to overhaul government bureaucracy, turning it into a more modern, efficient system.
DOGE’s Main Functions and Goals
DOGE serves as an advisory body and works closely with the White House and the Office of Management and Budget (OMB) to find ways to save $2 trillion in federal spending. Its main goals include:
- Identifying and eliminating wasteful spending,
- Cutting back on regulations that hold back innovation, and
- Restructuring federal agencies to be leaner and more results-focused.
Big Ambitions and Challenges
Elon Musk believes that DOGE could cut around $2 trillion from the federal budget, though it’s unclear if this would be achieved in one year or over a longer period. Jamie Dimon, CEO of JPMorgan Chase, also supports DOGE, seeing it as a promising step toward better government competency. However, some have raised concerns about a potential conflict of interest, as Musk’s companies, such as SpaceX, are contractors for the U.S. government.
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Impact on Dogecoin’s Price and Market Cap
The announcement of DOGE and Musk’s involvement had a huge impact on Dogecoin’s price and market cap. Here’s a breakdown of the events and how they affected Dogecoin’s value:
1. September 7, 2024 – Elon Musk Tweets about DOGE
On September 7, 2024, Elon Musk tweeted for the first time about DOGE, posting a picture of himself holding a sign that said “D.O.G.E.” The tweet sparked excitement among crypto fans, who saw DOGE as more than just a government program and viewed it with the same spirit of innovation as Dogecoin.
Impact: Dogecoin’s price quickly jumped from $0.10 to $0.13 within hours. Trading volume surged on the charts, showing strong market interest in the token.
2. November 12, 2024 – Trump’s Official DOGE Announcement
On November 12, Trump officially announced DOGE and Elon Musk’s role as its leader. Musk shared this on social media, and the market reacted positively.
Impact: Dogecoin’s price soared again, from $0.13 to around $0.25 in a single day, marking a gain of over 90%. Dogecoin’s market cap also surged, rising from $16 billion to around $32 billion as interest in DOGE and Dogecoin grew.
3. November 13, 2024 – Musk’s Follow-Up Tweet about DOGE
On November 13, Musk tweeted about DOGE again, calling it “the future of efficient government.” This message strengthened positive sentiment in the market, leading to a significant price increase.
Impact: Dogecoin’s price rose from $0.25 to $0.36, with a visible rise in trading volume on the chart. Dogecoin’s market cap hit around $54 billion, making it one of the best-performing crypto assets during this period.
Summary of Market Cap and Price Impact on Dogecoin:
- November 7, 2024: Price rose from $0.10 to $0.13 after Musk’s tweet.
- November 12, 2024: Trump’s announcement boosted the price from $0.13 to $0.25; market cap increased from $16 billion to $32 billion.
- November 13, 2024: Musk’s second tweet drove the price up from $0.25 to $0.36, with market cap reaching around $54 billion.
With Musk’s support and the DOGE announcement, Dogecoin successfully captured market attention, driving its price and investor confidence higher. This surge in price and market cap shows that the DOGE program is impacting not only government reform but also the global crypto market.
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[Editor’s Note: This article does not represent financial advice. Please do your research before investing.]
Featured Image Credit: Chaindebrief
