Musk Warns of Impending Debt Crisis, Highlights Bitcoin and Energy as Key Assets

Tuesday Dec 2 2025 13:20

Duration

1 min

  1. 1. Musk's Debt Crisis Warning and Bitcoin's Role

  2. 1.1 Energy as the True Currency

  3. 1.2 AI and Inflation

  4. 1.3 Musk's Political Stance and Cryptocurrencies

  5. 1.4 Energy vs. Fiat Currencies

Musk's Debt Crisis Warning and Bitcoin's Role

According to a report by Forbes, Elon Musk has once again voiced his concerns about the trajectory of the United States, warning of an impending debt crisis that could trigger significant fluctuations in Bitcoin prices. This warning comes as investors closely monitor potential policy changes from the US Federal Reserve in December.

Energy as the True Currency

During an interview with Nikhil Kamath, Musk stated that "currency as a concept may cease to exist in the future, and energy will become the only true currency." He further explained, "That's why I say Bitcoin is based on energy because you can't create energy through legislation." He also pointed out that the US is significantly increasing the money supply through a deficit of nearly $2 trillion.

AI and Inflation

Musk also predicts that the development of artificial intelligence within three years will lead to growth in the production of goods and services that surpasses the rate of inflation. "In about three years, the growth in the production of goods and services will exceed the growth in the money supply. We might then see deflation, interest rates dropping to zero, and debt problems becoming much smaller than they are now."

Musk's Political Stance and Cryptocurrencies

While Musk's support for Bitcoin and cryptocurrencies is not as strong as it was during the COVID-19 pandemic, he continues to support Bitcoin and Dogecoin. Previously, Musk stated that the "American Party" he advocates for would prefer Bitcoin over the US dollar, describing the dollar and other non-asset-backed currencies as "hopeless."

Energy vs. Fiat Currencies

In October, Musk emphasized that Bitcoin relies on non-forgeable energy, while fiat currencies suffer from the problem of over-issuance.

Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients. 

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Written by:

Sophia Claire

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