Tesla and SpaceX CEO Elon Musk sparked a new debate about Bitcoin after he said in a recent social post that the cryptocurrency is “based on energy” and that energy cannot be counterfeited. This comment, posted on X, quickly caught the attention of investors and politicians alike.
Musk’s remarks came as the market moved. Bitcoin was down, trading around $86,500 at the time of publication, and cryptocurrency reports showed an explosion across social feeds and trading desks. Some market observers saw this statement as reinforcing the narrative of BTC as an inflation hedge.
Musk frames Bitcoin as ‘energy money’
According to Musk, the act of mining connects Bitcoin to physical energy. Miners consume electricity to secure the network and mint new coins, which makes Bitcoin harder to counterfeit than printed fiat currency, he said.
In a new video shared from Nikhil Kamath’s interview, Musk made his position clear.
Get out now @ElonMusk pic.twitter.com/dQVLniUgWA
— Nikhil Kamathcio (@nikhilkamatathcio) November 30, 2025
This argument presents energy use as a type of evidence that causes scarcity, rather than as a defect. Several cryptocurrency outlets have unpacked this idea and explained how it contrasts with past criticisms Musk has expressed about the environmental damage caused by mining.
Market movements and political repercussions
Traders and some policymakers reacted quickly. Bitcoin supporters expressed support, but others urged caution. Meanwhile, separate reports indicate that SpaceX recently moved nearly $270 million worth of Bitcoin, a move that traders have flagged as potentially market-ruling. Both sides of the debate said Musk’s posts could have an impact on investor sentiment, at least in the short term.
What the energy debate means
The core of the argument is simple. Central banks cannot produce energy by printing more currency. The idea appeals to those worried about increased public spending on technology and AI, which some analysts say could put pressure on fiat currencies.
But critics point out a gap: the energy used to mine Bitcoin does not result in a stored reserve like gold. It is consumed. They argue that value still depends not only on energy, but also on trust and demand.
Past positions and ongoing questions
Musk’s comments represent a notable change from his previous stance in 2021, when Tesla suspended Bitcoin payments due to mining energy issues.
Since then, the mining sector has partially transformed, with more projects claiming to use renewable energy, while some still rely on fossil fuels. The debate now has a mix of technological, economic and political contexts, making it difficult to find clear answers.
Featured image by Lovepik, chart by TradingView
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