Elon Musk Rarely Changes His Tune: Bitcoin Cannot Fake Energy Value!

For many years, Tesla CEO Elon Musk, who has criticized Bitcoin's high energy consumption, may have changed his perspective. Musk recently praised Bitcoin's energy utilization and posted on social media that Bitcoin's value is related to the irrefutability of energy. He stated, “This is why Bitcoin is energy-based: you can issue fake fiat currency, and every government in history has done this, but energy cannot be faked.”

Analysis of the Core Logic of Musk's Energy Value Theory

Musk's remarks on X reveal his profound understanding of the true nature of Bitcoin's value. “You can issue fake fiat currency, every government in history has done this, but energy cannot be faked.” This statement contains two levels of discourse.

The first layer is a critique of fiat currency: Governments can print money endlessly, leading to inflation and currency devaluation. Historically, countless cases, from the hyperinflation of the Weimar Republic to the collapse of currency in Zimbabwe, have demonstrated the fragility of the fiat currency system.

The second layer affirms the energy-based nature of Bitcoin: The generation of Bitcoin requires the consumption of real energy, and this energy consumption is an objective existence in the physical world that cannot be created or forged out of thin air. Each newly generated Bitcoin corresponds to the electricity consumed by miners, the mining machines purchased, and the time invested. This anchoring to the physical world gives Bitcoin a property similar to gold's “mining cost,” unlike the “no-cost printing” characteristic of fiat currency.

This view aligns with that of Bitcoin supporters, who believe that Bitcoin only circulates when miners consume energy to process new transaction blocks, rather than being printed by the government. The supply of Bitcoin is entirely controlled by algorithms, with a fixed total of 21 million coins, and the rate of new coin generation is halved every four years. This design gives Bitcoin a natural anti-inflation characteristic. In contrast, the supply of fiat currency is determined by central banks, and its expansion rate often exceeds the rate of economic growth, leading to a continuous decline in purchasing power.

Musk's remarks have sparked a huge response in the crypto community, as they come from a former critic. In 2021, Musk announced that Tesla would stop accepting Bitcoin payments due to the energy consumption of Bitcoin mining, a decision that led to a short-term drop of over 10% in Bitcoin's price. Now he publicly acknowledges that the energy consumption of Bitcoin is a source of its value rather than a flaw, and this 180-degree shift is interpreted by the market as a potential positive signal.

This article originates from a discussion about how artificial intelligence is evolving into a “new global arms race.” Musk connects Bitcoin with the AI arms race, suggesting that in a world filled with uncertainty and competition, energy-based value storage may be more reliable than government-controlled fiat currencies. This discourse elevates Bitcoin from a mere investment target to the level of geopolitics and value philosophy.

The shift from criticism in 2021 to praise in 2025

Musk has stated that he does not hold any Bitcoin, and Tesla also stopped accepting Bitcoin as a payment method in 2021. In May 2021, Musk announced on Twitter: “Tesla has suspended vehicle purchases using Bitcoin. We are concerned about the rapid increase in fossil fuel usage for Bitcoin mining and transactions, especially coal, which has the most severe emissions of all fuels.” This statement caused the price of Bitcoin to plummet from $58,000 to $30,000, evaporating nearly 50% of its market value.

At that time, Musk's logic was from an environmentalist perspective: Bitcoin mining consumes a large amount of electricity, a significant portion of which comes from fossil fuels like coal, which contradicts TSL's mission of promoting clean energy. This criticism sparked a strong backlash from the Bitcoin community at the time, but also prompted the entire mining industry to accelerate its transition to renewable energy. After 2021, the proportion of renewable energy used in Bitcoin mining increased from about 40% to over 58% in 2024.

Elon Musk's stance has fundamentally changed. He is no longer focused on the source of energy (fossil fuels vs renewable energy), but rather on the philosophical significance of energy itself as a value anchor. This shift may stem from several factors: first, the greening process of the Bitcoin mining industry has indeed achieved significant results; second, Musk's thoughts on the monetary system and the nature of value have become more profound; third, TSL, as a company, needs to hedge against the risk of fiat currency devaluation.

This kind of shift in stance is not uncommon in Musk's career. He once criticized AI as “the greatest threat to humanity,” but later founded xAI. He questioned the commercial viability of electric vehicles, but TSL became the world's most valuable car company. Musk's way of thinking is dynamic, constantly adjusting his views as new information and environmental changes arise. For Bitcoin, this shift could mean that he is reevaluating its potential as a store of value.

Musk's Bitcoin Position Evolution Timeline

February 2021: TSL purchased $1.5 billion in Bitcoin and announced that it would accept BTC for car purchases.

May 2021: Stopped accepting BTC payments due to energy consumption concerns, triggering a price crash.

After 2021: repeatedly stated that he does not hold BTC and has a critical attitude towards the energy consumption of mining.

October 2025: Praising the energy value theory of Bitcoin, stating “Energy cannot be faked”

Community Reaction and TSL Payment Restart Speculation

As expected, Musk's recent comments about Bitcoin have sparked a lot of feedback. “We know you like Bitcoin,” a user wrote on X, “but you seem hesitant for some reason—maybe it's too slow and can't scale on the layer?” This comment points out the technical limitations of Bitcoin as a payment tool. The Bitcoin mainnet can only process about 7 transactions per second, far below Visa's tens of thousands per second. This performance bottleneck was one of the actual reasons Tesla stopped accepting BTC payments.

Another X user commented: “The principles of physics always supersede the 'principles' of government.” This response captures the philosophical core of Musk's discourse. The law of conservation of energy is a fundamental principle of physics that cannot be altered by any political or economic forces. In contrast, the value of fiat currency entirely depends on government credit and policy decisions, and this subjectivity makes it susceptible to manipulation. Bitcoin anchors value to objective physical laws, theoretically providing a more stable value foundation.

“When will TSL accept Bitcoin payments again?” someone asked. This is the most pressing question for the community. If Tesla resumes Bitcoin payments, it would be the strongest proof of Musk's change in stance. From a business perspective, accepting Bitcoin payments can attract wealthy cryptocurrency individuals, as the pricing of Tesla's high-end models aligns well with the spending power of Bitcoin holders. However, the price volatility of Bitcoin remains a challenge. Tesla's experiment in 2021 found that the drastic fluctuations in Bitcoin made financial management complex, which may be the reason they have not resumed payments so far.

The discussion about Bitcoin is very interesting because it highlights the general concerns people have about energy consumption, as well as the perspective of a top electric vehicle manufacturer on the matter. Musk has made many bold statements about Bitcoin, and his business decisions have sparked public outrage, while his public comments have also faced strong opposition. Musk's views on Bitcoin may influence some people's decisions to purchase TSL cars or support his other business projects.

From the perspective of market impact, a single statement from Musk often triggers billions of dollars in capital flow. When he announced that Tesla purchased Bitcoin in 2021, the price of BTC surged more than 20% in a single day. When he announced that he would stop accepting BTC payments, the price plummeted over 10%. Although the market's sensitivity to Musk's statements has decreased by 2025 (due to his frequent stance changes reducing credibility), his voice still carries significant market influence.

Long-term Reconciliation of Energy and Sustainability

However, regardless of your attitude towards Bitcoin, driving any brand of electric vehicle is undoubtedly one of the most beneficial choices for your wallet and the planet. Electric vehicles pollute the environment far less than traditional cars and are becoming increasingly popular worldwide due to their affordability, energy efficiency, and environmental advantages. Car owners are charging their electric vehicles at home using solar panels instead of relying on public charging stations, which further reduces the ownership cost of electric vehicles.

This discussion provides an interesting perspective: Bitcoin mining and electric vehicle charging can utilize the same clean energy infrastructure. Solar, wind, and hydropower can not only power electric vehicles but also provide electricity for Bitcoin mining. From this angle, Bitcoin mining may actually promote the development of the renewable energy industry, as mining offers a flexible, on-demand electricity demand that can absorb excess renewable energy from the grid.

Looking to the future, with the advancement of sustainable technology, Bitcoin may align with the renewable energy goals of electric vehicle manufacturers. TSL has solar panels and energy storage business (Tesla Energy), and if these clean energy sources are used for Bitcoin mining, it will create a perfect business closed loop: Tesla produces clean energy → used for mining to obtain Bitcoin → Bitcoin as a company reserve asset to hedge against inflation. This model is not only environmentally friendly but can also create new revenue streams for TSL.

Musk's recent statement may pave the way for Tesla to reconsider accepting Bitcoin payments or even increase its Bitcoin reserves in the future. Although he clearly stated that he does not hold Bitcoin, corporate decisions and personal preferences are often separate. If the process of greening Bitcoin continues to advance, and the market's acceptance of companies holding Bitcoin continues to rise, Tesla's return to the Bitcoin market is just a matter of time. For Bitcoin's price, the shift in attitude from Musk and Tesla may become an important catalyst for the next wave of institutional adoption.

The community's expectations are already very clear: “When will TSL start accepting Bitcoin payments again?” This question represents the voices of millions of crypto users.