Elon Musk appears to have changed his stance on Bitcoin, highlighting its energy base as a defense against inflation stemming from the global rise of artificial intelligence.
Recently, Tesla and SpaceX owner Elon Musk publicly praised Bitcoin's energy model as a strong defense against inflation, amid accelerated government spending on artificial intelligence development.
His comment, posted on the social network in response to a post by ZeroHedge, highlights that “Energy cannot be counterfeited”, referring to the proof-of-work mechanism that underpins Bitcoin, the world's most capitalized cryptocurrency and most robust blockchain network.
Musk's recent statement about Bitcoin has reignited the debate over the role of cryptocurrencies in the global economy, generating new interpretations of the tycoon's evolving thinking regarding the leading cryptocurrency and the industry in general.
Musk endorses Bitcoin. Enter today and trade with confidence.Bitcoin as an energy asset against inflation
Musk's comment came at a time when Bitcoin, gold, and silver were all experiencing simultaneous price growth. According to ZeroHedge, this phenomenon is due to a "devaluation" driven by the global arms race in artificial intelligence. Musk agreed with this reading, adding that Bitcoin, being energy-based, represents a reliable alternative to fiat currencies that governments can issue without restrictions.
“You can issue counterfeit fiat money, and every government in history has done so, but it is impossible to counterfeit energy.”, wrote Musk on X, referring to Bitcoin.
Musk's recent statement marks one of his first serious public interventions on Bitcoin since November 2022, when he predicted a "long winter" for the cryptocurrency following the collapse of FTX and Alameda Research. At the time, Bitcoin had fallen to $16.000, and Musk expressed that while BTC would survive, the process would be protracted. FTX's collapse, caused by the embezzlement of user funds, resulted in a loss of billions of dollars and was seen as the main catalyst for the bear market that followed.
In contrast, Musk's current discourse focuses on Bitcoin's structural strength. By linking its value to energy, Musk suggests that Bitcoin possesses a tangible quality that differentiates it from traditional currencies. This perspective reinforces the idea that Bitcoin can act as a hedge against inflation, especially in an environment where governments are issuing large amounts of money to fund technological advancements. The race to develop artificial intelligence has intensified this dynamic, and Musk seems to recognize that Bitcoin offers a structural answer to that challenge.
Elon Musk: From environmental criticism to structural recognition of BTC
In May 2021, Tesla suspended Bitcoin payments due to the network's high energy consumption. Musk then stated that the company would only allow BTC transactions if miners operating on the blockchain used at least 50% clean energy. This condition was seen as an attempt to align cryptocurrency adoption with the sustainability principles Tesla promotes.
Since then, the use of renewable energy in BTC mining has increased. According to data modeled by venture capitalist Daniel Batten and analyst Willy Woo, The grid reached an all-time high of more than 55% clean energyAlthough Tesla hasn't confirmed the reinstatement of BTC payments, the evolution of energy consumption could meet the requirements Musk outlined in 2021.
This change in BTC's energy matrix seems to have influenced Musk's new valuation of the cryptocurrency. By highlighting that its value is “based on energy”, the entrepreneur not only recognizes the improvement in sustainability, but also redefines Bitcoin's role in the digital economy. Instead of focusing on environmental impact, now underlines its structural resistance to inflation and monetary manipulation.
Bitcoin establishes a new monetary order
Elon Musk's endorsement of Bitcoin's energy model represents a significant evolution in his views on cryptocurrencies.
By recognizing that BTC's value is tied to a tangible resource like energy, Musk proposes a structural alternative to the monetary expansion that accompanies the development of artificial intelligence. This position aligns with a scenario where digital assets begin to play more defined roles in the global financial architecture.
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