Elon Musk, the CEO of Tesla, has once again shaken the crypto world with a dramatic reversal of his stance on Bitcoin. In a recent post on X, Musk declared that Bitcoin’s “energy-based foundation” is what truly gives it value — a complete turnaround from his earlier criticism in 2021.
Musk’s comment came in response to a user who claimed that “governments are funding the AI arms race by printing more money,” driving the prices of gold, silver, and Bitcoin to new highs. Musk agreed, writing: “True. That’s why Bitcoin is based on energy — you can issue fake fiat currency, and every government in history has done so, but you cannot fake energy.”
Bitcoin and the Energy Debate
Unlike fiat money, Bitcoin operates through a process known as mining — which consumes massive amounts of electricity to solve complex mathematical puzzles that secure the network and release new BTC. This “energy-backed” nature, according to Musk, is what gives Bitcoin its intrinsic and enduring value, distinguishing it from government-issued currencies.
From “Savior” to “Villain” of Bitcoin
Back in 2021, Musk was one of Bitcoin’s biggest advocates. When Tesla announced it would accept BTC payments for its cars, the cryptocurrency’s price skyrocketed, and Musk was hailed as the “messiah of decentralization.”
However, that honeymoon period was short-lived. Just weeks later, a single tweet from Musk — calling Bitcoin’s energy consumption “insane,” citing data from Cambridge University — caused Bitcoin’s market capitalization to evaporate overnight. Tesla quickly halted BTC payments and went on to sell 75% of its Bitcoin holdings in 2022, cashing out around $936 million.
Still, data from Arkham Intelligence shows that Tesla continues to hold 1,509 BTC — worth roughly $1.3 billion today — though this is a steep drop from its 2021 peak of 43,200 BTC. The fact that Tesla hasn’t sold off completely suggests Musk never truly left Bitcoin; he merely “turned off the lights.”
A Political and Ideological Shift
Earlier this year, following Donald Trump’s return to the U.S. presidency and his outspoken support for Bitcoin, Musk once again pivoted. He announced that his newly founded “America Party” would embrace and promote cryptocurrency adoption.
With Musk’s massive influence, this latest U-turn could mark more than just a personal change of heart — it might signal a new wave of optimism across the global crypto market, where faith in the “real” value of energy is making a powerful comeback.
