Elon Musk announced on Sunday the establishment of a new political party, telling one of his followers on platform X that the party would embrace Bitcoin because "fiat money is hopeless."
Elon Musk, CEO of Tesla and a technology entrepreneur, confirmed that his new political party, The America Party, will accept Bitcoin.
This came in response to a question from a user on platform X about whether the party would embrace Bitcoin, to which Musk replied: "Fiat money is hopeless, so yes."
Musk and his relationship with cryptocurrencies
Musk's relationship with Bitcoin has long been known, as Tesla was one of the first companies to adopt the currency and hold it in its reserves.
In 2021, under his leadership, Tesla bought Bitcoin worth $1.5 billion, becoming one of the first publicly traded companies to hold Bitcoin in its reserves.
Tesla currently holds 11,509 Bitcoins, equivalent to about $1.26 billion, making it the ninth largest publicly traded company in terms of Bitcoin holdings, according to Bitbo data.
Musk has also supported Dogecoin over the years, with his tweets causing sharp rises or falls in the price of this meme-based cryptocurrency.
Samson Mow, founder of Jan3, said Musk's embrace of Bitcoin could give him an edge in his ongoing feud with Donald Trump, adding that Tesla should return to accepting Bitcoin as a payment method and offer SpaceX discounts to customers who pay in Bitcoin.
In 2024, Musk initially rejected the idea of using the Bitcoin network as a means of payment on Mars, but later opened the door to the possibility of using the local Lightning network to address slow transaction speeds.
However, Musk was not always a supporter of Bitcoin; in 2021, he stated that the price of Bitcoin was "too high," causing its market value to decline at that time.
The dispute between Musk and Trump escalated
The relationship between Musk and former President Donald Trump has sharply deteriorated, especially after what is known as the "One Big Beautiful Bill" project, which Musk previously described as "crazy and completely destructive," warning that it would lead to millions of job losses and cause severe strategic damage to the United States.
This project is estimated to add about $3.3 trillion to the US national debt over the next decade.
Musk questioned Trump's logic in proposing an initiative named DOGE aimed at reducing the national debt, while he is seeking to increase it by additional trillions.
Later, Musk hinted that the country needs a new political party that "actually cares about people."
On Sunday, Musk officially announced the establishment of the "America" party, after more than 1.24 million users participated in a poll on platform X about whether he should launch the new party, with about two-thirds of participants voting in favor of the idea.
Musk stated in another post: "When it comes to the bankruptcy of the country through waste and corruption, we live in a one-party system, not in a real democracy."
Trump reacted angrily to Musk's announcement, warning that his new party could cause a split in Republican votes during the 2026 midterm elections.
