Elon Musk, CEO of Tesla and SpaceX, has sparked renewed discussions about Bitcoin, characterizing it as a “fundamental physics-based currency” rooted in energy.
During a recent podcast with Nikhil Kamath, Musk highlighted that Bitcoin’s value is linked to actual energy usage, making a clear distinction between digital assets and conventional fiat currencies.
“Energy is the true currency,” Musk stated. “This is why I said Bitcoin is predicated on energy. You can’t legislate energy. You can’t simply… pass a law and suddenly have an abundance of energy.”
The Tesla founder pointed out the challenges involved in producing and utilizing energy, connecting it to Bitcoin’s proof-of-work model, which necessitates significant computational power and electricity to secure the network.
He also mentioned the Kardashev scale — a framework for assessing a civilization’s energy consumption — as a way to view societal development. He proposed that judging a civilization by its ability to create and manage energy aligns with Bitcoin’s foundational principles, where scarcity and computational effort are fundamental to its value.
Looking ahead, Musk suggested that advancements in artificial intelligence and robotics might make money obsolete.
“In a future where everyone can have anything, I believe you won’t need money as a database for labor allocation,” he remarked, referencing Iain M. Banks’ post-scarcity Culture series as a model for societies where super-intelligent machines oversee resources without monetary systems.
Musk: You can’t print energy
Musk also highlighted Bitcoin’s unique characteristics. Unlike fiat money, which can be printed by governments at will, Bitcoin’s proof-of-work model links its creation to energy and computing power, providing it with inherent scarcity and a degree of independence from political interference.
“Governments can print money, but they cannot print energy,” Musk asserted.
While Musk envisions a future where energy could act as a more fundamental measure of value, he recognized that traditional money remains prevalent today.
National currencies still dominate commerce, wages, and savings, with cryptocurrencies like Bitcoin serving as alternative assets rather than substitutes for day-to-day transactions.
Musk’s comments serve as a reminder of the philosophical foundations of Bitcoin, linking it to physics and energy rather than to policy and governmental control.
Earlier today, Bitcoin’s price dropped 8% to the mid-$84,000s early Monday, extending a two-month decline that has wiped out over 30% since the record highs in October.
The decline followed a brief recovery above $92,500 last week after hitting November lows near $81,000.
