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

Elon Musk recently stated publicly that the United States' continuously growing debt problem could trigger drastic fluctuations in the price of Bitcoin. Currently, the US debt exceeds $38.3 trillion, and it is significantly increasing the money supply through a deficit of approximately $2 trillion. This view is consistent with his earlier proposition that "energy is the true currency." He emphasized, "Bitcoin is based on energy; after all, you can't create energy through legislation." Musk pointed out that the US debt has exceeded $38.3 trillion, with annual interest payments reaching as high as $1.2 trillion, even exceeding the defense budget. This debt growth model is unsustainable, and governments face difficult choices: cut welfare, increase taxes, or print more money. The former 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 in 2025, effectively diluting ordinary people's savings. Against this backdrop, Bitcoin's scarcity—a total supply of 21 million—becomes particularly valuable. Despite short-term volatility, Bitcoin has demonstrated significant price resilience in 2025. Since the 2024 halving, its price has surged by over 129%, briefly approaching the $130,000 mark. Elon Musk's views on Bitcoin have undergone a significant shift. He previously criticized the Bitcoin network's energy consumption, but now he believes that "proof-of-work is a feature, not a flaw." He emphasizes that "money as a concept will cease to exist in the future; energy will become the only 'real money.'" This viewpoint points to a deeper monetary philosophy: Energy-based Bitcoin may offer greater long-term stability than fiat currency based on credit. Bitcoin ETFs managed by institutions like BlackRock have reached $89 billion, and the Wisconsin State Pension Plan has also entered the market. This trend not only confirms Musk's prediction but also indicates that Bitcoin is moving from fringe experimentation to the mainstream financial stage. In the future, energy-based Bitcoin may become an effective tool against currency devaluation.