Elon Musk's America Party Embraces Bitcoin, Criticizes Fiat Currency

Elon Musk, the multi-billionaire entrepreneur, has declared that his newly launched America Party will embrace Bitcoin, describing fiat currency as "hopeless." This announcement comes as the party prepares to field candidates in the 2026 midterms, targeting key congressional seats. Musk's stance on fiat currency aligns with his vocal opposition to raising the debt ceiling, a position that has intensified as the U.S. national debt continues to climb and political gridlock over deficit spending persists.

Musk's tweet, "Fiat is hopeless, so yes," in response to a question about the party's stance on Bitcoin, has sparked discussions among crypto observers. Some believe that Musk's positions often blur the line between serious policy and provocation, while others see a genuine intention behind his statements. Philipp Zentner, founder and CEO of bridge and DEX aggregation protocol LI.FI, argues that Musk has the experience and means to push for significant changes in the political landscape.

The America Party's early stance on Bitcoin positions it as a form of counter-monetary policy. Mike Eli, founder of crypto perpetuals analytics platform Coinperps, suggests that if the party pursues austerity policies involving broad spending cuts, it could negatively affect Bitcoin, which typically thrives during monetary expansion or when currency debasement is expected. However, Bitcoin proponents argue that Bitcoin is already on its path to becoming a well-accepted decentralized alternative to gold, and its association with a high-profile political party emphasizes this belief.

Tomas Fanta, Principal at crypto-native venture capital firm Heartcore Web3, echoes this sentiment, stating that Bitcoin is an appropriate alternative to retain purchasing power in the face of fiat currency debasement. Despite this, Fanta describes Musk's embrace of Bitcoin as "soundbait," suggesting that it may be a strategic move rather than a genuine conviction. Tesla and SpaceX together hold nearly 19,800 BTC, indicating a deeper alignment across Musk’s ventures with the crypto asset.