Elon Musk touts Bitcoin as energy-based and inflation-proof, unlike ‘fake fiat’

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Billionaire entrepreneur and Tesla CEO Elon Musk touted Bitcoin’s quality to support investors from fiat wealth printing, which whitethorn summation owed to what analysts telephone an incoming government-funded contention to make artificial intelligence.

Elon Musk has praised Bitcoin’s (BTC) energy-based proof-of-work exemplary for its inflation-proof mechanism, which is immune to governmental fiat currency printing arsenic it is “impossible to fake energy."

“That is wherefore Bitcoin is based connected energy: you tin contented fake fiat currency, and each authorities successful past has done so, but it is intolerable to fake energy,” Musk wrote successful a Tuesday X post.

Musk’s remark came successful effect to fashionable expert Zerohedge’s post, which attributed the existent momentum down Bitcoin and precious metals to a “debasement” to money the government-funded AI arms race that volition play retired betwixt the world’s largest economies.

“AI is the caller planetary arms race, and capex volition yet beryllium funded by governments (US and China),” Zerohedge wrote successful a Tuesday X post, attributing the caller momentum of Bitcoin, golden and metallic to the “debasement to money the AI arms race.”

Musk predicted Bitcoin’s “long winter” aft FTX collapse, Tesla soundless connected BTC payments

Tuesday’s effect marks Musk’s archetypal superior Bitcoin-related nationalist station successful astir 3 years, since November 2022, erstwhile helium predicted the incoming crypto wintertime soon aft the illness of FTX and Alameda Exchange.

“BTC volition marque it, but mightiness beryllium a agelong winter,” wrote Musk successful an X station connected Nov. 14, 2022, successful effect to Bitcoin hitting the erstwhile carnivore market’s lowest constituent of $16,000.

FTX collapsed owed to the misappropriation of idiosyncratic funds, resulting successful an $8.9 cardinal nonaccomplishment of capitalist funds. The crypto speech filed for bankruptcy connected Nov. 11, 2022, and was seen arsenic the main catalyst down the consequent crypto winter.

However, Musk has yet to remark connected the sustainability of the Bitcoin mining network, which helium antecedently criticized for its over-reliance connected fossil fuels.

In May 2021, electrical car shaper Tesla suspended Bitcoin payments for conveyance purchases, citing biology concerns, which caused Bitcoin’s terms to driblet by 6% wrong an hour, from $54,800 to astir $51,600.

While Tesla hasn’t sold the bulk of its Bitcoin holdings, the steadfast has yet to remark connected perchance reinstating Bitcoin payments, arsenic Musk antecedently pledged to bash truthful if the mining network’s usage of renewable vigor increased.

On June 13, 2021, Musk said Tesla would let BTC transactions erstwhile it could corroborate that the Bitcoin mining web uses astatine slightest 50% cleanable energy.

Bitcoin mining’s sustainable vigor usage reached an all-time high of implicit 55%, according to the supra graph modeled by clime tech task capitalist Daniel Batten and Bitcoin expert Willy Woo.

Cointelegraph has approached Tesla for comment.