Did Elon Musk Just Define Bitcoin as the 'True Currency'?

Elon Musk recently shared his perspective that energy is the true currency, a statement that many Bitcoin enthusiasts interpret as support for Bitcoin, emphasizing its link to energy consumption. This article explores Musk's philosophy, linking it to cryptocurrency, and discusses his past stance on Bitcoin, particularly regarding its energy usage.

Key Takeaways

Energy as Currency: Elon Musk suggests that energy represents true value, aligning with Bitcoin's proof-of-work model.
Bitcoin’s Connection to Energy: Musk argues that Bitcoin’s energy consumption cannot simply be created or manipulated like fiat money.
Evolving Perspectives: Musk’s previous criticism of Bitcoin's environmental impact has softened due to changes in the energy sources used for mining.
Future of Money: Musk foresees a time when traditional money could become obsolete in a world shaped by AI and robotics.

Exploring Musk's View on Bitcoin and Energy

In a recent social media update, Elon Musk stated that energy is the genuine form of currency. Bitcoin supporters view this as an endorsement for the leading cryptocurrency, as it reinforces the fundamental principles of proof-of-work money. They interpret Musk’s statement as an indirect acknowledgment that Bitcoin holds a superior position as money since it is fundamentally linked to energy consumption, unlike fiat currencies.

According to a report from U.Today, Musk elaborated on this philosophy during a podcast about three weeks ago, specifically connecting his notion of "energy as currency" to Bitcoin. He commended Bitcoin for its association with energy, emphasizing that, unlike energy, it is impossible to "legislate" or easily produce more of it. Musk posited that the progress of civilization should be measured by how well it harnesses energy, referencing the Kardashev scale to illustrate his point.

Additionally, Musk speculated that money might eventually become unnecessary. He envisions a future where advancements in AI and robotics lead to a post-scarcity economy.

Musk's Changing Stance on Bitcoin

In 2021, Tesla invested $1.5 billion in Bitcoin and initially accepted it as a method of payment. However, a few weeks later, the company had to retract its acceptance of BTC due to concerns over Bitcoin's heavy reliance on coal-powered mining. At that time, a significant share of Bitcoin mining activities took place in China’s Xinjiang province, which was heavily dependent on coal for energy.

Fast forward to the period between 2021 and 2025, and the landscape shifted dramatically. China’s crackdown on cryptocurrency mining in mid-2021 compelled miners to relocate to more sustainable energy sources, such as Texas (wind and solar) and Iceland (geothermal). By 2025, a report from the Cambridge Centre for Alternative Finance indicated that Bitcoin mining had surpassed the 50% sustainability threshold in its energy consumption.

With changing circumstances, Musk has been able to align his views on Bitcoin with his commitment to sustainable energy, showing that the dialogue surrounding cryptocurrency and its environmental impact continues to evolve.