Elon Musk’s recent comments on Bitcoin reveal a notable transformation in his approach towards the cryptocurrency, emphasizing its fundamental link to energy and physics.
Musk’s aspirations to eliminate wasteful spending and inefficiencies within the U.S. federal government may have been met with challenges. However, these attempts appear to have prompted a shift in his views on Bitcoin.
Why is @elonmusk finally discussing Bitcoin’s vital relationship with physics and energy?
As @DSBatten adeptly describes, Elon has directly engaged in efforts against excessive governmental expenditures,…
Musk, the CEO of Tesla and SpaceX, gained significant attention on social media for suggesting that Bitcoin might one day supplant traditional currencies due to its foundational connection to physical energy. In a conversation with Indian entrepreneur Nikhil Kamath, he stated:
“Energy is the true currency. That’s why I say Bitcoin is based on energy.”
Musk added that energy generation cannot simply be legislated.
“You can’t legislate energy. You can’t just pass a law and suddenly have a lot of energy. It’s incredibly challenging to produce energy…”
This viral discussion marks one of Musk’s first public statements about Bitcoin in recent years, where he speculated that society might even transition away from traditional fiat currency systems altogether:
“We probably won’t have money. We’ll just have power generation as the de facto currency.”
The Ripple Effect of DOGE on Musk’s Bitcoin Perspective
Daniel Batten, a Bitcoin mining advocate, informed Cointelegraph’s Chain Reaction show that Musk’s failed attempts to assist the Trump administration in combating surplus government expenditure have significantly influenced his understanding of the financial framework.
Now, this is a show I’ve wanted to do for a long time! @DSBatten, Bitcoin misinformation detector, and I engaged with @elonmusk to discuss the broader affordability of mining and related topics.
According to Batten, Musk understood the futile nature of his efforts to limit government spending within a fiat economic framework after his experiment with DOGE failed. He emphasized:
“Elon’s been on a journey… He had to run that experiment, set up DOGE…”
Musk’s struggles with the Department of Government Efficiency (DOGE) relating to the U.S. debt crisis revealed uncomfortable truths about the realities of fiat currency dynamics. Batten commented:
“He knows that it is impossible to restrict government spending when you have infinite monetary creation. Hence, he recognizes the need for an alternative that detaches currency from the capability of excessive money printing.”
Batten noted that Musk’s physics background likely leads him to realize that monetary systems supported by energy are inherently inflation-resistant:
“Energy is not something you can create out of thin air; it is fundamentally a superior basis for stable currency. Thus, he’s gradually arriving at the conclusion that Bitcoin is the answer.”
Evolving Views on Bitcoin Mining
Batten also discussed the changing attitudes towards Bitcoin’s environmental impact in recent times. The mainstream narrative throughout the 2010s often painted Bitcoin’s energy consumption in an unfavorable light.
These misconceptions have largely been corrected by rigorous academic research, such as the Cambridge 2024 Digital Mining Industry Report.
Batten remarked that European policymakers have been influenced by persistent misinformation regarding Bitcoin mining, resulting in policies based on flawed assumptions:
“They’ve created regulations predicated on the incorrect belief that Bitcoin consumes a large amount of energy per transaction, which is misleading.”
He clarified that the energy expense linked to Bitcoin is primarily from the mining process, not individual transactions, which he elaborated as crucial for understanding scalability as the network can manage thousands more transactions without extra energy expenditure.
For more comprehensive insights into Bitcoin mining, check out Cointelegraph’s 2025 Bitcoin mining analysis.
