Musk’s magic money claims have rocked the financial world in recent days after his March 17 appearance on Senator Ted Cruz‘s podcast. Elon Musk revealed that he discovered these so-called “magic money computers” in several federal departments that can, at the time of writing, allegedly create funds out of thin air without proper oversight.
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How Musk’s ‘Magic Money’ and Dogecoin Are Shaping Crypto’s Future
Government’s Secret Money Machines
As the head of the Department of Government Efficiency (DOGE), Musk’s magic money investigations have identified about 14 computer systems across various federal departments with what he describes as essentially “blank-check authority.” These magic money computers were found in Treasury, Defense, Health and Human Services, and State departments, among others.
Musk stated:
You may think that the government computers all talk to each other, they’re synchronized, they add up what funds are going where, and it’s coherent and that the numbers you’re presented as a senator are the real numbers. They’re not totally wrong, but they’re probably off by 5% or 10% in some cases. So I call it ‘magic money computer’ — any computer that can make money out of thin air. That’s magic money.
An absolute bombshell from @elonmusk on the latest episode of Verdict.
— Ted Cruz (@tedcruz) March 17, 2025
He reveals there are 14 magic money computers in the federal government that send money out of nothing.
Don’t miss the latest episode of Verdict wherever you get your podcasts. Subscribe now!… pic.twitter.com/1tnJmJtiw9
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Crypto Community Response
The Elon Musk Dogecoin connection has certainly taken on an entirely new meaning right now as cryptocurrency advocates and experts have responded to his rather surprising findings. Bitcoin supporters have pointed to cryptocurrency as a potential solution to these government financial issues.
Jameson Lopp, chief security officer at Bitcoin custody company Casa, said:
Bitcoin fixes this.
This comment highlights why so many people actually support Bitcoin over traditional fiat currency. While governments can print an unlimited amount of money whenever they want, Bitcoin has a fixed supply of 21 million coins, making it somewhat resistant to inflation and other monetary issues.
Waste or Deliberate Fraud?
The Elon Musk Dogecoin department has also found that many government offices have more subscriptions, software licenses, and even credit cards than actual employees working there. Musk’s magic money investigation revealed some pretty concerning payment patterns that might indicate widespread problems.
He explained:
We saw a lot of payments going out of Treasury that had no payment code and no explanation for the payment, and then we’re trying to figure out what that payment is. Then we see that, okay, that contract was supposed to be shut off, but someone forgot to shut off that contract, and so the company kept getting money. Now, is that waste or fraud?
Elon Musk’s dogecoin work has really drawn a lot of attention to cryptocurrency regulatory concerns in the past week. As Dogecoin market impact continues to evolve and change, many analysts see Musk’s findings as supporting arguments for decentralized financial systems and alternative currencies.
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The Cost of Reform
The Dogecoin market impact extends well beyond just government offices and systems. Musk’s other business ventures have also faced some serious backlash as protesters have targeted Tesla facilities over DOGE’s aggressive cost-cutting measures.
The cryptocurrency regulatory concerns highlighted by these “magic money computers” may reshape both government financial systems and the dogecoin market impact in the coming months. These cryptocurrency comments continue to fuel an ongoing debate about financial transparency and cryptocurrency adoption among both experts and everyday investors.
They have put a spotlight on a fundamental question that many people are asking right now: Can traditional financial systems maintain public trust in this day and age? Or will cryptocurrency regulatory concerns drive more and more people toward decentralized alternatives that aren’t controlled by central authorities?
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