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

According to Forbes, Elon Musk recently issued another warning, stating that the United States is rapidly sliding into a "debt crisis" that could trigger significant volatility in Bitcoin prices.

As traders closely monitor potential major policy adjustments from the Federal Reserve in December, Musk further predicted that "money as a concept will cease to exist in the future," and that energy will become the only "true currency."

In an interview with Nikhil Kamath, Musk explained, "That's why I say Bitcoin is essentially energy-based—after all, energy cannot be created through legislation." He also emphasized that the US is significantly increasing the money supply through a fiscal deficit of approximately $2 trillion.

Musk also offered a prediction: within three years, advancements in artificial intelligence will drive the growth rate of goods and services output to exceed the inflation rate. "In about three years, the growth rate of goods and services output will exceed the growth rate of the money supply. At that time, there may be deflation, interest rates will fall to zero, and the debt problem will be far less significant than it is now."

Musk previously helped Donald Trump return to the White House through campaign rallies and warnings about the size of the US debt (now exceeding $38 trillion).

However, their relationship deteriorated sharply after Trump failed to effectively control government spending. Although Musk's support for cryptocurrencies is not as strong as it was during the peak of the pandemic, he continues to speak out in favor of Bitcoin and Dogecoin. After leaving the White House, Musk stated that his proposed "American Party" would be more inclined to choose Bitcoin over the dollar, and called the dollar and other asset-backed currencies "bleak."

Previously in October, Musk had pointed out that Bitcoin relies on "unforgeable energy," while fiat currencies are susceptible to over-issuance.