According to Musk, these systems exist in departments like Treasury, Defense, and Health and Human Services. They issue funds without clear oversight.
“You may think the government’s finances are well-tracked, but they’re probably off by 5% or 10% in some cases,” Musk said on Senator Ted Cruz’s podcast Verdict with Ted Cruz on March 17. “Any computer that can make money out of thin air—that’s magic money.” Can Bitcoin fix this?
Musk Highlights Waste and Inefficiency in Federal Spending
Musk’s findings suggest massive inefficiencies, with federal agencies having more media and software subscriptions than employees, sometimes even double. He estimates that 80% of the problem stems from waste and incompetence rather than fraud. Some companies even receive money by mistake, and no one follows up to get it back.
.@elonmusk: “One of the biggest fraud holes we’ve uncovered … is that the government can give money to a so called nonprofit … They then give themselves … insane salaries, expense everything, buy jets and homes … on the taxpayer dime … This is happening at scale.” pic.twitter.com/oqe9L5OShr
— Chief Nerd (@TheChiefNerd) March 17, 2025
“We saw a lot of payments going out of Treasury that had no payment code or explanation,” Musk said. “Then we see that a contract was supposed to be shut off, but it wasn’t, so the company kept getting money. Now, is that waste or fraud?”
Bitcoin: A Fix for Government Waste?
Bitcoin is often called “hard money” because it cannot be created out of thin air. Unlike the U.S. dollar, which the Federal Reserve can print at will, Bitcoin operates on a transparent, decentralized ledger. Every transaction is recorded, auditable, and irreversible. If the U.S. government were to adopt a Bitcoin-based system, there would be no room for “magic money computers” to send payments with no oversight.
With Bitcoin, every transaction must be validated and confirmed by a decentralized network, making it nearly impossible to lose track of funds. No single entity can manipulate the supply, eliminating the risk of unauthorized payments or wasteful government spending.
The Real Cost of Loose Money
Musk’s revelations come at a time when inflation continues to eat away at Americans’ purchasing power. When the government prints money irresponsibly, it dilutes the value of the dollar—essentially a hidden tax on citizens. It’s like adding water to a pot of soup; it may look like more, but it’s just less flavorful and less filling.
Switching to a Bitcoin-based financial system wouldn’t just expose government inefficiencies—it would prevent them. With Bitcoin, every dollar spent would have a clear, unchangeable history. No more “Oops, we accidentally paid a company for months without realizing it.”
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
The post How Bitcoin Fixes Musk’s ‘Magic Money Computer’? appeared first on Altcoin Buzz.
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