Key Points
- Tesla CEO Elon Musk has shown support for Bitcoin, emphasizing its foundation on real energy.
- Musk’s endorsement led to a rebound in Bitcoin’s price, despite recent fluctuations.
Elon Musk, the CEO of Tesla, has shown significant support for Bitcoin, following a suggestion by Zero Hedge that Artificial Intelligence (AI) is the new global arms race.
Musk’s endorsement comes after a period of silence on the cryptocurrency, a notable move as the industry recovers from a recent downturn triggered by the US-China trade war.
Bitcoin’s Foundation on Energy
Zero Hedge highlighted the increasing prices of gold, silver, and Bitcoin amidst the “debasement trade”. The analysis platform suggested that trade surplus would be directed towards funding the AI arms race, a global competition that will eventually be funded by governments such as the U.S. and China.
Musk, in response, said, “You can’t print energy,” underscoring Bitcoin and lauding its grounding in real energy. He emphasized that while governments can issue fake fiat currency, it’s impossible to fake energy. This statement is a clear endorsement of Bitcoin.
Musk’s endorsement immediately led to a rebound in Bitcoin’s price. However, the cryptocurrency is still experiencing significant fluctuations, currently trading at $110,198.99 with a 4.14% dip within the last 24 hours.
Musk’s comments also highlight concerns about the US government printing money out of thin air. He has previously insinuated that the government has “magic money computers,” and consistently issues warnings over the spiralling $37 trillion US national debt.
Musk’s Influence on Cryptocurrency
It’s worth noting that Musk has previously shown considerable interest in Dogecoin, a meme coin that has increased in value due to his support.
In mid-September, Musk’s company Grok AI secured US government approval, leading to a 4% increase in Dogecoin’s value. However, when he shifted his focus to Tesla, it resulted in a short-term bearish sentiment on Dogecoin markets.
