- Elon Musk claimed that his team has found “magic money’ computers highlighting inflation.
- Crypto advocate Jameson Lopp said that Bitcoin can fix the issue of currency debasement.
- Musk’s claim on money-printing computers fuels Bitcoin speculation ahead of the FOMC meeting.
Elon Musk, the head of the Department of Government Efficiency, has recently revealed that his cost-cutting efforts in the US government have led his team to identify around 14 computers of the Federal government with blank-check authority indicating that they can print unlimited amounts of cash.
Speaking at a podcast hosted by Texas Senator Ted Cruz, Musk highlighted that the computers are placed in government organizations like Treasury, Health, Human Services, State, and Defense and issue payment without adequate oversight. He said,
I call it the Magic Money Computer. Any computer that can make money out of thin air. That’s magic money.
The timing of Musk’s statement is significant, given it precedes the FOMC (Federal Open Market Committee) meeting on March 18 and 19, 2025. The FOMC is responsible for setting US monetary policy and is expected to maintain the federal funds, interest rates, money supply, and overall economic stability.
Though Musk claimed that these computers “just send money out of nothing. However, he added that the amount is not entirely wrong, but there are significant differences of 5-10%. His latest comments have alarmed the government’s role in money, especially among Bitcoin supporters who have long viewed it as a hedge against inflation.
Related: BlackRock CEO Larry Fink Predicts Bitcoin Could Hit $700K
Crypto advocates like Jameson Lopp, co-founder of Casa, highlighted in his X post that Bitcoin could fix the issue of currency degradation. As a result, Bitcoin is widely viewed as a hedge against currency debasement, given its fixed supply of 21 million BTC, unlike fiat currency, which the government can print indefinitely. This concern, shared by BlackRock CEO Larry Fink, comes from fears that excessive money printing devalues traditional currencies. Fink has described Bitcoin as a “currency of fear,” appealing to investors worried about inflation. By design, Bitcoin’s supply is coded to remain scarce, reinforcing its reputation as a store of value in contrast to fiat money, which can be created without limit.
Speculations were rife as Musk’s comments indirectly hinted at the prospect of digital assets ahead of the FOMC meeting. With concerns over fiat currency stability increasing, could his statement be signaling Bitcoin’s rise? However, as markets brace for potential volatility, traders wait in anticipation.
