Elon Musk has reasserted his belief that energy, not fiat currency, is the ultimate store of value, linking Bitcoin’s energy foundation to the accelerating global race for dominance in Artificial Intelligence (AI).
Responding to a post by ZeroHedge on X (formerly Twitter), Musk agreed that the massive capital expenditure (capex) required for AI—which governments in the U.S. and China will likely fund—will inevitably lead to currency debasement.
Musk stated:
“True. That is why Bitcoin is based on energy: you can issue fake fiat currency, and every government in history has done so, but it is impossible to fake energy.”
ZeroHedge had earlier framed the AI race by noting, “If you want to know why gold, silver, and Bitcoin are soaring, it’s the debasement to fund the AI arms race. But you can’t print energy.”
Musk’s Evolving Relationship with Bitcoin
Musk’s recent praise for Bitcoin’s energy-backed value comes after a highly publicized and shifting relationship with the cryptocurrency:
- Initial Adoption (Feb 2021): Tesla bought $1.5 billion worth of Bitcoin and announced it would accept it for vehicle payments, with Musk hailing its potential.
- Environmental Concerns (May 2021): Tesla suspended Bitcoin payments, citing concerns over the high energy consumption of its Proof-of-Work (PoW) mining model.
- Massive Sale (July 2022): Tesla quietly dumped roughly 75% of its Bitcoin holdings, valued at about $936 million, citing the need to “maximize liquidity” amid macroeconomic uncertainty.
Despite the significant sale, Musk has consistently described himself as a supporter of “crypto in principle.” Tesla currently retains approximately 11,509 BTC, valued at about $1.29 billion. Musk has also separately championed Dogecoin, integrating $DOGE payments into Tesla’s online store for select merchandise.
October 2025, Cryptoniteuae
