Elon Musk Praises Bitcoin’s Resistance To Inflation
It seems that Elon Musk is once again showing interest in bitcoin after several years of silence.
The CEO of Tesla and SpaceX broke his three-year silence on bitcoin early Tuesday, responding to a post from financial outlet ZeroHedge that linked the surging prices of gold, silver, and Bitcoin to global monetary “debasement” caused by artificial intelligence spending.
“True,” Musk replied. “That is why 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.”
Musk’s mention of bitcoin immediately caught the attention of the market on X, with traders interpreting it as a potential sign of renewed interest from Musk, reinforcing bitcoin’s narrative as “digital energy” or “digital gold.”
Following the post, pro-Bitcoin Senator Cynthia Lummis (R-Wyo.) commended Musk on X, suggesting that a Strategic Bitcoin Reserve could secure U.S. debt with a scarce, auditable asset and potentially retire a significant portion of it in the future.
In March, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile to centralize government-held crypto assets. The Reserve, which includes the $14 billion in recently seized bitcoin, will be held as a store of value and not sold.
Elon Musk’s History with Bitcoin
Tesla made headlines when it purchased $1.5 billion worth of Bitcoin in early 2021 and announced plans to accept BTC for vehicle payments.
Back in 2021, Musk expressed his support for Bitcoin, stating, “I think Bitcoin is a good thing. I am a supporter of Bitcoin. I am late to the party but a supporter. I think Bitcoin is on the verge of getting broad acceptance by conventional finance people.”
However, Musk later reversed course, citing environmental concerns about Bitcoin mining’s reliance on fossil fuels. He announced that Tesla would suspend vehicle purchases using Bitcoin until mining operations shifted to more sustainable energy sources.
In mid-2022, Tesla sold approximately 75% of its Bitcoin holdings at a low point in the market, while retaining around 11,509 BTC, currently valued at an estimated $1.29 billion according to CoinGecko data. The remaining Bitcoin was sold at an average price of $29,000, with Bitcoin recently reaching all-time highs in the $126,000 range.
Since then, Musk has largely refrained from discussing Bitcoin publicly and has avoided addressing the topic in interviews.
