“Fiat is ineffective, so absolutely,” Elon Musk responded to an X user who inquired if his new party would welcome Bitcoin.
Elon Musk’s Connections to Cryptocurrency
Elon Musk is well-acquainted with Bitcoin, as Tesla was an early adopter, keeping BTC in its reserves.
During his tenure as Tesla’s CEO, the company purchased $1.5 billion worth of BTC in early 2021, making it one of the first publicly traded companies to include Bitcoin in its treasury reserves.
Currently, Tesla possesses 11,509 BTC, valued at around $1.26 billion, positioning the EV manufacturer as the ninth-largest publicly traded company to hold Bitcoin in its treasury, according to Bitbo.
Over the years, the Tesla CEO has also championed Dogecoin, causing the price of the memecoin to either surge or plunge in response to his tweets.
Samson Mow, founder of Jan3, remarked that embracing Bitcoin could provide Musk an advantage over Trump in their ongoing rivalry.
Mow suggested that Tesla should start accepting Bitcoin as payment once more, and that Musk’s SpaceX could offer discounts for Bitcoin payments.
In 2024, Musk dismissed the proposal of using the Bitcoin network for transactions on Mars. However, he later considered the possibility, saying that a localized Lightning Network might alleviate the problem of slow transactions.
Musk’s stance on Bitcoin has not always been positive. In 2021, he stated that the price of Bitcoin was “too high,” which resulted in a decline in BTC’s value.
Musk’s conflict with Trump
Musk’s connection with Donald Trump has soured due to Trump’s “One Big Beautiful Bill,” which Musk has referred to as “completely insane and harmful,” arguing that it will lead to the loss of millions of jobs in the US and result in “significant strategic damage” to the nation.
The One Big Beautiful Bill Act is projected to increase the US national debt by $3.3 trillion over the coming decade.
Musk questioned Trump’s reasoning behind creating the DOGE initiative, which aims to reduce the US national debt, if he plans to significantly raise the national debt.
He later suggested that the US requires a new political party that “actually prioritizes the needs of the people.”
On Sunday, Musk declared that he would be establishing the America Party after over 1.24 million individuals participated in his poll regarding the party’s creation, with nearly two-thirds of respondents expressing support for it.
“When it comes to financially ruining our nation through waste and corruption, we operate as a one-party system, not a democracy,” Musk remarked.
Following this, US President Donald Trump criticized Musk for his decision to form a third political party. Trump stated that Musk’s new party might divide the Republican vote during the 2026 US midterm elections.
