Elon Musk Backs Bitcoin And Reveals “Energy” Is The Reason Why

CEO of Tesla has backed Bitcoin once again.

And his reason why is rather interesting!

Elon Musk on X recently shared energy and not fiat is the ultimate asset.

Musk stated, “Bitcoin is based on energy: you can issue fake fiat currency.”

Yahoo Finance provided context to Musk’s statement:

Elon Musk has linked Bitcoin’s energy foundation to the world’s accelerating artificial intelligence (AI) boom, arguing that energy not fiat money is the ultimate store of value.

Responding to a post by financial outlet ZeroHedge on Oct. 13, Musk agreed that the ongoing global race to dominate AI will drive massive spending and potential currency debasement.

“True,” Musk wrote on X (formerly Twitter).

“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 noted that the “money is not the problem” in the AI race, suggesting that future capital expenditure (capex) will be underwritten by governments in the U.S. and China.

“If you want to know why gold, silver, and Bitcoin are soaring, it’s the debasement to fund the AI arms race,” ZeroHedge posted. “But you can’t print energy.”

Take a look at the exchange here:

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.

— Elon Musk (@elonmusk) October 14, 2025

The Street reported Tesla previously accepted Bitcoin as a form of payment but the company has since halted accepting the cryptocurrency:

In February 2021, Tesla announced it had purchased $1.5 billion worth of Bitcoin and would begin accepting it as payment for vehicles. Musk hailed the cryptocurrency’s potential as “a good thing” and positioned Tesla as a forward-looking company embracing decentralized finance.

Within months, however, that optimism cooled. By May 2021, Musk announced Tesla would suspend Bitcoin payments, citing environmental concerns about the cryptocurrency’s proof-of-work (PoW) mining model, which consumes significant energy to secure the network.

“We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions,” Musk said at the time.

In July 2022, Tesla quietly dumped roughly 75% of its Bitcoin holdings, worth about $936 million, during a period of macroeconomic uncertainty and market stress. The company said the sale was made to “maximize liquidity” amid COVID-related shutdowns in China, but the decision effectively ended Tesla’s brief tenure as a major Bitcoin holder.

Despite this, Musk never entirely abandoned Bitcoin. He has repeatedly described himself as a supporter of “crypto in principle”, often distinguishing between its technological merits and its environmental footprint.

He’s also praised Dogecoin, calling it “the people’s crypto,” and has integrated DOGE payments into Tesla’s online store for select merchandise.

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