Tesla and SpaceX’s Elon Musk has sparked a new debate about Bitcoin after he said in a recent social post that Bitcoin is “based on energy” and that energy cannot be faked. The comment, posted on X, quickly caught the attention of investors and politicians.
Musk’s comments were reflected in market movements. Bitcoin fell, trading at around $86,500 at the time of posting, and crypto coverage noted a flurry of reactions across social feeds and trading desks. Some market participants saw this statement as supporting BTC’s case as an inflation hedge.
Musk considers Bitcoin to be ‘energy money’
According to Musk, the act of mining links Bitcoin to physical energy. Bitcoin is harder to counterfeit than printed fiat currency, he said, because miners consume electricity to secure the network and mint new coins.
In a new clip shared from an interview with Nikhil Kamath, Musk makes his position clear.
out now @Eron Musk pic.twitter.com/dQVLniUgWA
— Nikhil Kamath (@nikhilkamathcio) November 30, 2025
This line of argument presents energy use not as a defect, but as a type of evidence that creates scarcity. Several crypto outlets published articles unpacking this idea and explaining how it contrasts with past criticisms expressed by Mr. Musk about the environmental impact of mining.
Market movements and political influence
Traders and some policymakers were quick to react. Bitcoin supporters voiced their support, while others urged caution. Meanwhile, other reports indicate that SpaceX recently moved around $270 million worth of Bitcoin, with traders warning that the move could shake up the market. People on both sides of the debate said Musk’s posts could affect investor sentiment, at least in the short term.
The meaning of the energy debate
The core of the argument is simple. Energy cannot be manufactured the way central banks print more money. The idea is appealing to those concerned about increased public spending on technology and AI, which some analysts say could put pressure on fiat currencies.
But critics point out gaps. The energy used to mine Bitcoin does not turn into stored reserves like gold. it is consumed. They argue that value remains largely dependent on trust and demand, not just energy.
Past stances and ongoing questions
Musk’s comments mark a clear shift from his stance prior to 2021, when Tesla suspended Bitcoin payments due to concerns about mining energy.
Since then, the mining sector has partially changed, with more projects claiming the use of renewable energy, although some still rely on fossil fuels. The current debate is a mix of technical, economic, and political factors, making it difficult to find a clear answer.
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