Written by: Martin
Musk recently stated publicly that the continuously growing U.S. debt problem could trigger significant volatility in Bitcoin's price. Currently, U.S. debt exceeds $38.3 trillion and is substantially increasing the money supply through a deficit of approximately $2 trillion.
This viewpoint aligns with his earlier concept that "energy is the real currency." He emphasized, "Bitcoin is based on energy; after all, you cannot create energy through legislation."
Musk pointed out that the scale of 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. The government faces difficult choices: cutting welfare, increasing taxes, or printing more money. The first two face significant political resistance, while printing more money could lead to a decline in the purchasing power of the dollar.
The purchasing power of $1 in 2008 will be only $0.73 by 2025. Ordinary people's savings are being invisibly diluted. In this context, Bitcoin's characteristic of scarcity—with a total supply of 21 million coins—appears particularly valuable.
Despite facing short-term volatility, Bitcoin has demonstrated significant price resilience in 2025. Since the halving in 2024, its price has surged over 129%, once 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 he believes "proof-of-work is a feature, not a bug." He emphasized, "In the future, money as a concept will cease to exist, and energy will become the only 'real currency.'"
This viewpoint points to a deeper monetary philosophy: Bitcoin, based on energy, may have greater long-term stability than fiat currency based on credit. Bitcoin ETFs managed by institutions like BlackRock have reached a management scale of $89 billion, and pension funds like Wisconsin's have also begun allocating to it.
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.
