Elon Musk Links Bitcoin’s Value to Energy Amid AI Arms Race
Elon Musk has sparked discussion by praising Bitcoin’s energy-backed value. He connected this to the growing global AI arms race. Musk responded to a post by ZeroHedge about rising tensions between government AI goals and energy limits.
ZeroHedge described AI as a “new global arms race.” It noted that countries like the US and China plan huge AI infrastructure projects. The post said government spending, often funded by money printing, has pushed up gold, silver, and Bitcoin prices. These assets are seen as safeguards against currency devaluation.
In a reply, Musk agreed with ZeroHedge. He added, “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.”
Energy Use and Bitcoin’s Security
ZeroHedge warned that AI’s growing energy needs could be a problem. It said the US might need hundreds of nuclear plants by 2028 to meet AI’s energy demand.
Musk agreed on the energy issue but said energy use sets cryptocurrencies apart from fiat money. Bitcoin’s Proof of Work (PoW) system uses most of this energy.
PoW protects Bitcoin’s network and processes transactions. Miners solve complex math problems using computing power. The first to solve a problem adds a new block to the blockchain and earns BTC rewards. This process consumes energy but ensures coins are mined through real work. This creates scarcity and security that fiat currency cannot match.
Elon Musk’s Role in Crypto
Elon Musk is a key figure in cryptocurrencies. He has promoted Bitcoin and Dogecoin (DOGE) in recent years. Tesla, his company, was the first to accept bitcoin payments. It holds 11,509 BTC, worth about $1.22 billion.
Musk is called the Dogefather for his strong support of Dogecoin. His endorsements have caused major price spikes for the memecoin.
He believes better energy efficiency can make cryptocurrencies valuable stores and trading tools. Musk sees blockchain and crypto as technologies that could transform finance, business, and AI funding. His posts and business moves show how social media, tech, and finance are increasingly linked in crypto.
