According to the post by ZeroHedge, which has more than 2 million followers, the rallies were tied to what the author called an AI “arms race” between the US and China and to large-scale fiscal outlays.
Musk agreed with the thread. He added a view that echoes a common pro-Bitcoin line: fiat can be printed, while Bitcoin’s tie to energy gives it a different kind of backing. That single-word answer reopened a conversation many thought had cooled.
The money is not the problem: AI is the new global arms race, and capex will eventually be funded by governments (US and China). If you want to know why gold/silver/bitcoin is soaring, it’s the “debasement” to fund the AI arms race.
True.
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.
Based on reports, Tesla bought $1.5 billion of Bitcoin in early 2021 and said it would take the coin as payment for cars. But the deal was short-lived.
The company soon stopped accepting Bitcoin because of concerns about mining’s heavy energy use and said it might resume payments only after a major move toward renewable mining practices.
Traders read signals. A single public endorsement from a high-profile executive used to move prices more. That was the case in 2021 when Tesla’s investment and payment plan helped lift sentiment.
Featured image from ET Edge Insights, chart from TradingView
