Elon Musk Praises Bitcoin’s Inflation-Proof Model Amid AI Arms Race
Elon Musk praised Bitcoin’s proof-of-work model for its resistance to inflation and protection against fiat currency debasement, claiming that Bitcoin’s basis in real energy makes it immune to being faked, unlike government-issued currencies. His comments respond to concerns that governments, especially the US and China, may increase money printing to fund an AI development arms race, which analysts say is partly driving demand for Bitcoin and precious metals. Musk’s remarks mark his first significant public statement on Bitcoin in nearly three years, following his 2022 prediction of a prolonged bear market after the FTX collapse. While Tesla suspended Bitcoin payments in May 2021 over concerns about the environmental impact of Bitcoin mining, with Musk pledging to reinstate them if at least 50% renewables are used, the company has not provided recent updates on this issue, even as data suggests Bitcoin mining’s clean energy usage has surpassed 55%.
