Elon Musk has highlighted Bitcoin’s potential to protectinvestors from government money printing. His remarks follow growingspeculation that public spending could rise as nations compete to developartificial intelligence.In a post on X, Musk pointed to Bitcoin’s proof-of-worksystem, describing it as an energy-based mechanism that prevents artificialvalue creation. He said that while governments can produce more fiat currency,“it is impossible to fake energy.”AI Arms Race Boosts Bitcoin Demand“That is why Bitcoin is based on energy: you can issue fakefiat currency, and every government in history has done so, but it isimpossible to fake energy,” Musk wrote.Digitalassets meet tradfi in London at the fmls25Musk’s comments came in response to a post by market analystZerohedge, which described artificial intelligence as “the new global armsrace.” The post suggested that governments, particularly in the United Statesand China, may fund AI expansion through public capital expenditure. Zerohedgelinked recent strength in Bitcoin, gold, and silver to what it called a“debasement to fund the AI arms race,” suggesting investors are turning to hardassets as a hedge against currency dilution.ELON MUSK ON $BTC 🔥Fiat can be faked. Energy can’t. That’s why Bitcoin = energy. ⚡💰 pic.twitter.com/XTc1Vbz9Xt— Dr. Lightning (@pIaysome) October 14, 2025Fiat, Inflation, and Blockchain InnovationCryptocurrencies were created to challenge centralisedpayment systems through blockchain technology, enablingfaster and cheaper cross-border transfers without intermediary banks.Traditional systems like SWIFT remain slow and costly, while blockchain cansettle transactions in minutes.Bitcoin’s fixed supply of 21 million coins positions it as ahedge against inflation, unlike fiat currencies that governments can expand.This scarcity has driven adoption in inflation-hit economies such as Venezuelaand Argentina.However, Bitcoin’s volatility and scalability issues limitits use as a payment method. Regulators increasingly classify it as an asset,while central banks develop blockchain-based digital currencies to maintaincontrol over monetary systems. This points to a future where digital fiats andcryptocurrencies coexist within global finance.This article was written by Tareq Sikder at www.financemagnates.com.