Sen. Cynthia Lummis (R-Wyo.) referenced Elon Musk's argument on Bitcoin’s (CRYPTO: BTC) energy model on Tuesday to build a case for a strategic reserve of the cryptocurrency
Lummis Supports Musk’s Thesis
Lummis lent support to Musk’s statement that “Bitcoin is based on energy” and, unlike fiat currencies, governments cannot “fake” energy by printing it.
“Add this to the reasons why a Strategic Bitcoin Reserve is the wisest thing we can do to shore up USD,” Lummis said. She argued that such a reserve could address U.S. debt problems with a “hard” asset that can be audited at any time.
“Given its scarcity, we can also use it in 20+ yrs to retire a meaningful % of US debt,” Lummis added.
See Also: Millionaire Trader Lost $15M But Says BTC, ETH, SOL Remain Bullish In Q4
First Compelling Argument, Says Ferragu
Influential Wall Street analyst Pierre Ferragu labeled Musk’s remarks as the “first compelling argument” he had heard about Bitcoin.
Strategy founder and famed Bitcoin bull Michael Saylor also reacted to Musk’s argument, stating, “The laws of nature are superior to the laws of man.”
The ‘Energy’ Argument
Although Musk didn't specifically refer to Bitcoin mining, a process that consumes significant electricity to power computers and secure the network, most observers connected his energy argument to it.
Bitcoin advocate Marty Bent highlighted that miners are producing more than 1 sextillion hashes per second to add a block to the ledger and create new BTC.
“This is a race that is open for anyone to participate in, it’s impossible to cheat, and this race is core to creating a fair distributed system that takes the power of money printing out of the hands of central bankers and politicians,” they argued.
Many observers echoed a common critique voiced by figures like Peter Schiff, questioning what intrinsic value Bitcoin actually provides.
Price Action: At the time of writing, BTC was exchanging hands at $111,902.00, up 3.08% in the last 24 hours, according to data from Benzinga Pro.
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