Elon Musk, CEO of Tesla and SpaceX, has reignited some discussion around Bitcoin, describing it as an energy-based “fundamental physics-based currency.”
In a recent podcast with Nikhil Kamath, Musk emphasized that Bitcoin’s value is tied to real-world energy expenditure, highlighting a distinction between digital assets and traditional fiat currencies.
“Energy is the real currency,” Musk said. “That’s why I said Bitcoin is based on energy. You can’t legislate energy. You can’t just, you know… pass a law and suddenly have a lot of energy.”
The Tesla founder drew attention to the difficulty of producing and harnessing energy, linking it to Bitcoin’s proof-of-work system, which requires substantial computing power and electricity to protect the network.
He also referenced the Kardashev scale – a method of measuring a civilization’s energy consumption – as a lens for understanding social progress. He suggested that evaluating a civilization by its ability to generate and manage energy reflects the design principles of Bitcoin, where scarcity and computational effort underpin value.
Looking ahead, Musk proposed that advances in artificial intelligence and robotics could make money obsolete.
“In a future where anyone can have anything, I think money is no longer needed as a database for labor allocation,” he said, citing Iain M. Banks’ Post-Scarcity Culture series as a model for societies where super-intelligent machines manage resources without monetary systems.
Musk: cannot print energy
Musk also highlighted the unique qualities of Bitcoin. Unlike fiat money, which governments can print at will, Bitcoin’s proof-of-work system ties its creation to energy and computing power, giving it inherent scarcity and relative independence from political influence.
“Governments can print money, but they can’t print energy,” Musk said.
While Musk envisions a future in which energy could serve as a more fundamental measure of value, he acknowledged that traditional money remains dominant today.
National currencies continue to govern commerce, wages and savings, while cryptocurrencies like Bitcoin exist as alternative assets rather than substitutes for everyday transactions.
Musk’s comments recall the philosophical underpinnings of Bitcoin, linking it to physics and energy rather than politics and government control.
Earlier today, the price of Bitcoin plunged 8% to the mid-$84,000s early Monday, extending a two-month decline that has erased more than 30% from October’s all-time highs.
The drop followed last week’s brief recovery above $92,500 after November lows near $81,000.
