Key Points
- Elon Musk, CEO of Tesla, has praised Bitcoin amidst discussions of AI being the new global arms race.
- Musk’s endorsement of Bitcoin has sparked conversation about the US government’s money printing habits.
Elon Musk, Tesla’s CEO, has voiced his approval for Bitcoin, following a suggestion by Zero Hedge that Artificial Intelligence (AI) is the new global arms race.
Musk’s comments on Bitcoin are significant, given that he has been quiet on the subject for some time. This comes at a time when the cryptocurrency industry is recovering from a downturn triggered by the US-China trade war.
Bitcoin’s Energy Basis
Zero Hedge highlighted the increasing prices of gold, silver, and Bitcoin in the context of the “debasement trade”.
They suggested that trade surplus would be used to fund the AI arms race. The analysis platform further proposed that we are in the midst of an AI global arms race, with capital expenditure likely to be funded by governments such as the U.S. and China.
Elon Musk chimed in on this, stating, “You can’t print energy,” as he praised Bitcoin for its foundation in real energy. He elaborated, “Bitcoin is based on energy: You can issue fake fiat currency, and every government in history has done so, but it is impossible to fake energy.”
Traders reacted to Musk’s endorsement of Bitcoin, resulting in a rebound in BTC price. However, the coin’s price is still fluctuating significantly. Bitcoin is currently trading at $110,198.99, with a 4.14% dip in the last 24 hours.
Musk’s statement further underscores concerns about the US government’s habit of printing money. He has previously hinted at the government having “magic money computers,” and consistently warns about the spiralling $37 trillion US national debt.
Musk’s Influence on Cryptocurrency
It’s worth noting that Elon Musk has shown considerable interest in Dogecoin for a significant period of time, and this attention has aided the meme coin in increasing its value.
In mid-September, a deal was made between the electric car manufacturer and the US government that resulted in a 4% gain for DOGE. This was related to his Grok AI securing US government approval.
Just prior to this, Musk shifted his focus towards Tesla, which resulted in a short-term bearish sentiment in the Dogecoin markets.
