Elon Musk’s recent remarks linking Bitcoin to physical energy have reignited debate around his long-evolving views on the world’s largest cryptocurrency. The Tesla and SpaceX chief suggested that Bitcoin may ultimately replace fiat currency due to its fundamental roots in energy, a statement that has been widely shared across social platforms.

Musk Connects Money to Energy

In a conversation with Indian entrepreneur Nikhil Kamath, Musk argued that true value stems from the ability to generate and harness energy.
“Energy is the true currency. That’s why I say Bitcoin is based on energy,” he said. He further explained that unlike money issued by governments, energy cannot be created through legislation or political decisions.
“You can’t just pass a law and suddenly have more energy. It is difficult to generate and even harder to harness in a way that performs meaningful work,” he noted.
Musk suggested that society could eventually move beyond the current fiat-driven system. “We probably will not have money. We will just have power generation as the de facto currency,” he said.

DOGE Experiment Influenced Musk’s Thinking

Daniel Batten, a well known Bitcoin mining advocate, believes Musk’s experience with the Department of Government Efficiency (DOGE) shaped his new stance. Batten told the Chain Reaction show that Musk initially hoped to curb government overspending within a fiat system.
“Elon sincerely believed it was possible to rein in government spending under a fiat based economy. He had to test that idea, set up DOGE and watch it fail,” Batten said.
According to him, Musk’s attempt to address America’s growing debt problem exposed the limits of a system where governments can print unlimited money.
“He knows now that you cannot control government spending when infinite money printing is possible. You need something that breaks the link between money and the ability to create it endlessly,” Batten added.

Energy Backing Makes Bitcoin More Appealing

Batten argued that Musk’s physics background naturally guides him toward appreciating Bitcoin’s energy based design.

“Energy is not something you can conjure into existence. It is fundamentally scarce which makes it a stronger foundation for sound money,” he said.
He believes Musk is gradually concluding that Bitcoin best fits this model due to its reliance on real energy for mining.

Environmental Narrative Around Bitcoin Is Shifting

Batten also addressed how public perception of Bitcoin mining has changed. Throughout the 2010s, many mainstream reports framed Bitcoin as an environmental threat due to its energy use. These claims have increasingly been challenged by academic and industry research, including the Cambridge 2024 Digital Mining Industry Report.
Batten noted that European policymakers have been particularly influenced by outdated or inaccurate reports.
“They created policies shaped by the incorrect idea that Bitcoin uses a lot of energy per transaction which is simply untrue,” he said.
He emphasised that Bitcoin’s energy consumption comes from mining, not individual transactions. The network could process many more transactions without consuming extra energy.
“The per transaction metric suggests Bitcoin becomes less sustainable as it scales. That belief remains common among some regulators in Europe,” Batten said.

A Changing Landscape for Bitcoin

As wider research challenges long-standing misconceptions, Bitcoin’s environmental and economic narratives are undergoing a noticeable shift. Musk’s renewed public acknowledgement of Bitcoin’s energy linked foundation marks one of his most positive statements on the subject in years.
The debate around sound money, energy use and the future of digital currency continues to evolve, yet Musk’s comments highlight a growing convergence between physics, economics and technology in shaping the financial systems of tomorrow.