Elon Musk, the CEO of Tesla and a billionaire entrepreneur, has praised Bitcoin for its ability to shield investors against fiat currency printing. This may be due to an increase in what some analysts believe is a government-funded race towards artificial intelligence.
Musk has applauded Bitcoin’s (BTCThe inflation-proof system is based on an energy-based model of proof-ofwork. It is not susceptible to government fiat currency printing. “impossible to fake energy.”
“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 wrote in an X Tuesday post.
Musk made his comment in response to an article by popular financial analyst Zerohedge, who attributed current Bitcoin and precious-metal prices to the “advantage” of cryptocurrencies. “debasement” The government funds the AI arms race The world’s biggest economies will be involved in a battle.
“AI is the new global arms race, and capex will eventually be funded by governments (US and China),” Zerohedge published a post on Tuesday. postThe recent growth of Bitcoin, Gold and Silver can be attributed to the “debasement to fund the AI arms race.”
Related: $19B crypto market crash was ‘controlled deleveraging,’ not cascade: Analyst
Musk has predicted Bitcoin’s future “long winter” after FTX collapse
Musk responded to the question on Tuesday, his first Bitcoin-related post for nearly three years. That was in November 2022 when he had predicted that the crypto winter would arrive shortly after the collapses of FTX, Alameda Exchange, and FTX.
“BTC will make it, but might be a long winter,” Musk responded to the Bitcoin bear market reaching its lowest point, $16,000 on November 14, 2022 in an X-post.
FTX has collapsed because of the theft of funds from users, resulting to an $8.9bn loss for investors. The crypto exchange filed for bankruptcy The next major event is expected to occur on November 11, 2022. crypto winter.
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Musk is yet to make a comment about the sustainability of Bitcoin’s mining network. He previously criticised it for being too dependent on fossil fuels.
The electric vehicle manufacturer will launch its new model in May 2021. Tesla suspended Bitcoin payment for vehicle purchase, citing concerns about the environment, caused Bitcoin’s price to fall by 6% in an hour from $54,800 down to $51,600.
You can also contact us by clicking here. Tesla hasn’t sold The company, which has a majority of Bitcoins in its holdings, is yet to make a comment about possibly reinstating Bitcoin payment, Musk had previously promised to do so if renewable energy usage increased on the network.
On June 13, 2021, Musk said Tesla is ready to accept Bitcoin transactions when it confirms that Bitcoin’s mining network utilizes at least 50% renewable energy.
Bitcoin Mining’s Sustainable Energy Use reached an all-time high According to this graph, which was modeled by Daniel Batten of Climate Tech Venture Capital and Willy Woo, a Bitcoin analyst.
Tesla has been contacted by Cointelegraph for a comment.
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Source: cointelegraph.com
