Musk predicts: A $38.3 trillion "crisis" could trigger a surge in Bitcoin prices.

PANews reported on December 2nd, citing Forbes, that Elon Musk has again warned that the US is rapidly heading towards a "debt crisis" that could trigger dramatic fluctuations in Bitcoin prices. As traders prepare for potential major policy changes from the Federal Reserve in December, Musk predicts that "money as a concept will cease to exist," and energy will become the only "real money." In an interview with Nikhil Kamath, Musk stated, "That's why I say Bitcoin is based on energy; after all, you can't create energy through legislation." He also mentioned that "the US is significantly increasing the money supply through a deficit of approximately $2 trillion." Musk further predicted that within three years, the development of artificial intelligence will cause the growth rate of goods and services output to outpace inflation. "In about three years, the growth rate of goods and services output will exceed the growth rate of the money supply. At that time, there may be deflation, interest rates will drop to zero, and the debt problem will be much smaller than it is now."

Musk helped Trump return to the White House through campaign rallies and warnings about the ever-increasing US debt (currently exceeding $38 trillion), but their relationship deteriorated sharply after Trump failed to control government spending. While Musk's support for Bitcoin and cryptocurrencies has fallen from its peak during the COVID-19 pandemic, he continues to support Bitcoin and Dogecoin. After leaving the White House, Musk stated that his "American Party" would prefer Bitcoin to the US dollar, calling the dollar and other non-asset-backed currencies "hopeless."

In October, Musk stated that Bitcoin relies on unforgeable energy, while fiat currencies have the problem of being fictitious .