Global billionaire and Tesla CEO Elon Musk has returned to Bitcoin after a nearly three-year hiatus, insisting that the cryptocurrency can protect investors from the dangers of government-printed fiat money.
In a post on the X platform on Tuesday, Musk praised Bitcoin's energy-based proof-of-work model, describing it as an inflation-proof mechanism that cannot be manipulated.
The statement was made in response to a post from popular analyst Zerohedge, who described the recent surge in Bitcoin and precious metals as a reaction to 'government welfare' to fund the AI arms race between world economic powers.
The post was Musk's first serious comment on Bitcoin since November 2022, when he predicted a crypto market crash following the FTX and Alameda Exchange crises.
However, Musk has yet to respond to the issue of energy sustainability in Bitcoin mining, which was previously the reason he withdrew support for BTC transactions through Tesla.
In May 2021, Tesla stopped accepting Bitcoin as a payment method for its vehicles due to environmental concerns, causing the price of BTC to plummet by more than 6% in an hour.
With Bitcoin now nearing $111,000, Musk's latest comments appear to have reignited discussions about the digital asset's role as a hedge against inflation and perhaps even as an alternative to the traditional financial system that relies on government 'fiat money'.
