Elon Musk has changed his mind about Bitcoin. Again. This week, the world’s richest techno-contrarian and X overlord declared that Bitcoin’s energy-based foundation is precisely what gives it value — a far cry from 2021, when he slammed the cryptocurrency’s power consumption as “insane” and abruptly halted Tesla’s Bitcoin payments.
Musk’s latest comment came amid a discussion about artificial intelligence as the new global arms race — where he mused that Bitcoin and gold are rising because investors are fleeing the “debasement trade.” Translation: governments are printing money to fund the AI boom, and people are looking for harder assets that can’t be faked.
“This is why Bitcoin is based on energy,” Musk wrote. “You can issue fake fiat currency, and every government in history has done so, but it is impossible to fake energy.”
It’s a classic Musk turn — a soundbite that doubles as a meme, backed by just enough physics to sound profound. But it also marks a full-circle moment: he’s now parroting Bitcoiners’ favorite defense — that proof-of-work isn’t a flaw, it’s the feature.
It is impossible to fake energy, said Elon Musk about Bitcoin, Source: X
From Climate Villain to Energy Philosopher
Back in 2021, Musk was Bitcoin’s biggest fan for about three weeks. Tesla started accepting BTC for cars, Bitcoin rallied, and crypto Twitter anointed him the messiah of decentralization. Then, just as suddenly, he called the network’s electricity use “insane,” citing data from Cambridge University’s Bitcoin Electricity Consumption Index.
That single tweet vaporized billions in market cap overnight. Tesla stopped accepting BTC payments and later dumped roughly 75% of its Bitcoin holdings in 2022, pocketing around $936 million at the time.
But Tesla still holds 11,509 BTC — worth roughly $1.28 billion at current prices — down from a peak of 43,200 BTC in 2021. Musk never fully left the building; he just turned the lights off for a while.
Now, his tone has changed. His new energy-centric praise of Bitcoin sounds more like a quote you’d hear from Michael Saylor, the MicroStrategy executive who promptly jumped into Musk’s mentions to declare, “The laws of nature are superior to the laws of man.”
Of course, Saylor would say that. But what’s striking is that Musk is now echoing the same “thermodynamic truth” narrative he once dismissed.
The Physics of Value
There’s a poetic symmetry here. Musk built his fortune on the physics of energy — rockets, solar panels, and electric vehicles. So it’s not surprising that, eventually, he’d see Bitcoin as another expression of energy-as-truth.
The argument goes like this: unlike fiat currency, which can be inflated away, Bitcoin’s supply is capped and each coin is “mined” through the real-world expenditure of energy. That energy cost anchors Bitcoin in the physical world. In an era when AI is flooding the internet with synthetic everything — text, art, voices, data — Bitcoin’s proof-of-work mechanism stands out as something that literally can’t be faked.
For Musk, that’s the punchline. You can deepfake a human, but you can’t deepfake joules.
What Changed?
Maybe Musk sees Bitcoin less as an environmental threat and more as a philosophical counterweight to an increasingly virtual economy. Or maybe Tesla’s still quietly hodling and he just enjoys trolling the markets.
Either way, his U-turn underscores a broader trend: the “energy FUD” era is over. The conversation has shifted from how much energy Bitcoin uses to what kind of energy — and what that energy represents.
Bitcoin miners, for their part, have moved toward renewables faster than any other heavy industry. Estimates suggest over 55% of mining now relies on sustainable energy — a figure that would’ve met Musk’s own 2021 requirement to resume BTC payments.
The Bottom Line
Elon Musk once called Bitcoin’s power draw “insane.” Now, he calls it incorruptible. The truth, as usual, lies somewhere in between: Bitcoin is energy-intensive, but that’s the point. The costliness of its creation is what gives it meaning — in the same way that energy is the cost of doing anything real.
And if there’s one thing Musk understands, it’s that nothing meaningful happens without energy.