Written by: Martin
Elon Musk recently stated that the ongoing debt problem in the United States could lead to significant fluctuations in Bitcoin prices. Currently, U.S. debt has exceeded $38.3 trillion and is significantly increasing the money supply through a deficit of about $2 trillion.
This viewpoint aligns with his earlier idea that "energy is the true currency." He emphasized, "Bitcoin is based on energy; after all, you cannot create energy through legislation."
Musk pointed out that the scale of U.S. debt has surpassed $38.3 trillion, with annual interest payments reaching as high as $1.2 trillion, even exceeding the defense budget.
This pattern of debt growth is unsustainable, and the government faces tough choices: cut benefits, raise taxes, or increase the money supply. The first two options face significant political resistance, while increasing the money supply could lead to a decline in the purchasing power of the dollar.
The purchasing power of $1 in 2008 will only be equivalent to $0.73 by 2025, and the savings of ordinary people are being diluted invisibly. In this context, the scarcity of Bitcoin — with a total supply of 21 million coins — becomes particularly valuable.
Despite facing short-term volatility, Bitcoin still shows significant price resilience in 2025. Since the halving in 2024, its price has surged over 129%, once approaching the $130,000 mark.
Musk's views on Bitcoin have undergone a significant transformation. He previously criticized the energy consumption of the Bitcoin network, but now he believes that "proof of work is a feature, not a flaw." He emphasized, "The concept of currency will no longer exist in the future; energy will become the only 'true currency.'"
This perspective points to a deeper monetary philosophy: energy-based Bitcoin may offer more long-term stability than credit-based fiat currencies. Institutions like BlackRock have already managed Bitcoin ETFs totaling $89 billion, and Wisconsin's pension fund has also entered the market.
This trend not only confirms Musk's predictions but also indicates that Bitcoin is moving from the fringes of experimentation to the mainstream financial stage. In the future, energy-based Bitcoin may become an effective tool against currency devaluation.
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