Musk Revives Bitcoin (BTC) Debate, Calls It “Proof of Energy” Amid AI Arms Race

• Musk feels Bitcoin’s proof-of-work model backed by energy protects it against fiat inflation.
• He foresees a “long winter” for Bitcoin following the FTX debacle but believes it will recover.
• Musk views BTC as insurance against the devaluation of currency with increased government expenditure on AI.

In a recent twist, Elon Musk has reopened the discussion around the value proposition of Bitcoin (BTC), pointing out that the cryptocurrency is in several respects a shield against fiat inflation, particularly in the face of the global AI arms race. His remarks come at a time of growing concern over the ways in which governments will fund elaborate AI expenditure programs.

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Musk’s Energy-Based Argument

Musk ended a years-long silence on BTC through an X post, responding to a ZeroHedge message that suggested gold, silver, and Bitcoin price increases are being fueled by fiat debasement employed to bankroll AI advancement. Musk responded simply with “True,” and added:

By framing BTC within this context, Musk revived the “energy argument,” meaning that as BTC uses actual energy for its proof-of-work mining process, it is less likely to suffer from unchecked inflation than fiat currencies. He hinted that governments may increasingly turn more to printing fiat money to fund capital-intensive technologies like AI.

Also Read: Bitcoin Faces $110K Support Test with Over 90% of BTC Supply Still in Profit

Musk Foresees Bitcoin’s Tough Path Amid Crypto Turmoil

In November 2022, after the spectacular meltdown of the FTX cryptocurrency exchange, Elon Musk spoke about the condition of BTC, saying,. This statement recognized the difficulties that lie in front of the cryptocurrency sector.

The FTX collapse shocked the crypto market, causing BTC’s price to plummet. Nevertheless, Musk was optimistic regarding the future of BTC, implying that even though the market was experiencing short-term struggles, the cryptocurrency would manage to last.

Musk’s remark emphasized the wider implications of FTX’s collapse, which shook investor confidence and market stability. His prophecy attested to the resiliency of BTC and its ability to bounce back from such a hitch.

Almost three years on, in October 2025, Musk once again expressed his backing for BTC. He complimented Bitcoin’s energy-proof-of-work system as a protection against fiat manipulation, saying, “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’s latest comments point toward sustained faith in BTC’s underlying worth and status as an inflation hedge, mirroring a long-term vision for the cryptocurrency’s potential.

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