Elon Musk announced the formation of a new political party on Sunday, telling one of his followers on X that it will embrace Bitcoin as “fiat is hopeless.”
Tesla CEO and tech entrepreneur Elon Musk has announced that his newly established political party, the America Party, will accept Bitcoin. Responding to an X user who inquired about the party’s stance on Bitcoin, Musk stated, “Fiat is hopeless, so yes.”
Source: Elon Musk
Musk’s Crypto Connections
Elon Musk is well-acquainted with Bitcoin, having led Tesla to become an early adopter by holding BTC in its treasury. Under his leadership, Tesla invested $1.5 billion in Bitcoin in early 2021, making it one of the first publicly traded companies to include Bitcoin in its reserves. Currently, Tesla holds 11,509 BTC, valued at around $1.26 billion, ranking it as the ninth-largest publicly traded company with Bitcoin in its treasury, according to Bitbo.
Musk has also shown support for Dogecoin, which has seen significant price fluctuations in response to his tweets. Samson Mow, founder of Jan3, suggested that embracing Bitcoin could give Musk an advantage over Donald Trump in their ongoing rivalry. Mow proposed that Tesla should resume accepting Bitcoin as payment and that SpaceX should offer discounts for Bitcoin transactions.
In 2024, Musk initially dismissed the idea of using the Bitcoin network for payments on Mars but later considered the potential of a localized Lightning Network to address transaction delays. However, he has not always been a Bitcoin advocate; in 2021, he remarked that Bitcoin’s price was “too high,” leading to a drop in its value.
Musk’s Feud with Trump
Musk’s relationship with Donald Trump has soured, particularly over Trump’s “One Big Beautiful Bill,” which Musk labeled “utterly insane and destructive,” arguing it would lead to millions of job losses in the U.S. and cause significant strategic harm. The bill is projected to add $3.3 trillion to the national debt over the next decade. Musk questioned Trump’s rationale behind the DOGE initiative, aimed at reducing the national debt, while simultaneously increasing it by trillions.
He later hinted at the need for a new political party that “actually cares about the people.” Following a poll in which over 1.24 million people participated—two-thirds in favor—Musk announced the creation of the America Party. “When it comes to bankrupting our country with waste and graft, we live in a one-party system, not a democracy,” he stated.
In response, Trump criticized Musk for forming a third political party, suggesting it could split the Republican vote in the upcoming 2026 midterm elections.
Source: Cointelegraph Editor: Bernie S.
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