Musk recently stated publicly that the United States’ growing debt problem could trigger significant volatility in Bitcoin prices. Currently, U.S. debt has exceeded $38.3 trillion and is rapidly increasing the money supply through an annual deficit of about $2 trillion.
This view aligns with his earlier notion that “energy is the real currency.” He emphasized, “Bitcoin is based on energy—after all, you can’t create energy by passing legislation.”
Musk pointed out that the 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 welfare, raise taxes, or increase the money supply. The first two face significant political resistance, while increasing the money supply could erode the purchasing power of the dollar.
The purchasing power of $1 in 2008 will drop to just $0.73 by 2025, silently diluting ordinary people’s savings. Against this backdrop, Bitcoin’s scarcity—its total supply capped at 21 million—becomes especially valuable.
Despite short-term fluctuations, Bitcoin has demonstrated remarkable price resilience in 2025. Since the 2024 halving, its price has soared over 129%, at one point approaching the $130,000 mark.
Musk’s view on Bitcoin has undergone a significant shift. He once criticized the energy consumption of the Bitcoin network, but now believes that “proof of work is a feature, not a bug.” He stressed, “In the future, the concept of money will cease to exist, and energy will become the only ‘real currency.’”
This perspective points to a deeper monetary philosophy: Bitcoin, based on energy, may offer greater long-term stability compared to credit-backed fiat currencies. Institutions such as BlackRock now manage $89 billion in Bitcoin ETFs, and the Wisconsin state pension fund has also allocated holdings.
This trend not only confirms Musk’s predictions but also signals that Bitcoin is moving from a fringe experiment to the mainstream financial stage. In the future, energy-based Bitcoin may become an effective tool against currency devaluation.
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