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- Zafar Naik
Zafar Naik
- Reviewed by:
Qadir AKQadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Oct 14, 2025 09:55 UTC
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Elon Musk Says “Bitcoin Is Based on Energy” as AI Drives Global Power Concerns
Elon Musk says Bitcoin’s value is tied to real energy, contrasting it with fiat money governments can print.
The AI boom is creating massive power demand, highlighting energy as the true scarce resource.
The crypto community reacted quickly, seeing Musk’s tweet as a positive signal for Bitcoin.
Elon Musk is back in the headlines, linking Bitcoin, energy, and the AI boom in a single tweet that has everyone talking. Responding to a post about the energy needed to fuel AI, Musk said:
“True. That is why Bitcoin is based on energy: you can issue fake fiat currency, and every government in history has done so, but it is impossible to fake energy.”
The line hits at a simple truth: governments can print money, but they can’t print energy. Does this give Bitcoin a huge advantage?
AI Is Driving Energy Demand to the Limit
Alarms are being raised that the AI arms race could require “hundreds of new nuclear power plants” in the US by 2028. The argument is that governments will fund the AI push with money printing, causing inflation and pushing investors toward gold, silver, and Bitcoin.
Musk’s reply reframes the discussion. Bitcoin, he implies, is not just a digital currency – it’s a system tied to a real, scarce resource: energy. Unlike fiat, Bitcoin requires actual work, actual electricity, and therefore something you cannot fake.
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Musk’s Energy Philosophy Comes Through
This isn’t new for Musk. Tesla has been pushing hard into energy storage and solar power through its Megapacks, Powerwalls, and SolarCity acquisition. He has long treated energy as the backbone of real value.
At the same time, Musk has had a complicated relationship with Bitcoin. In 2021, he called Bitcoin mining “insane” and paused Tesla’s acceptance of it over environmental concerns. Later, he softened, saying Tesla would accept Bitcoin when mining is about 50% clean energy.
Now, he’s highlighting Bitcoin’s link to energy again but this time as a strength, not a liability. It’s proof that value can be tied to a tangible, scarce resource rather than just printed money.
Energy, AI, and the Real Limits
The bigger picture is stark. AI, cloud computing, and other tech growth are creating massive electricity demand. Building dozens of nuclear plants in a short time is unrealistic. The world will have to rely on a mix of renewables, storage, gas, and efficiency improvements to keep the lights on.
Musk’s point is clear: in a world where governments can flood markets with money, energy is the true scarce resource. And Bitcoin, tied to that energy, is a claim to legitimacy in an era of unlimited fiat.
Crypto Community Reacts
The response was immediate. Some asked pointedly: “When will Tesla start accepting Bitcoin payments again?” Others pointed to Musk’s earlier moves, noting: “Makes sense why you put Bitcoin on the Tesla and SpaceX balance sheets a long time ago.”
For many in the crypto space, Musk’s post felt like a signal. One user wrote: “Elon is posting about Bitcoin again. We are so f****** back.”
The excitement shows how rarely Musk directly references Bitcoin these days and how much influence a single tweet from him still carries in the crypto world.
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FAQs
Both AI and Bitcoin mining require massive electricity, highlighting energy as a scarce, valuable resource and strengthening the argument for Bitcoin’s real-world cost.
Not currently. Tesla paused Bitcoin payments in 2021 over environmental concerns but may resume when mining uses more clean energy, per Musk’s past statements.
Governments can create unlimited fiat currency, but they cannot create energy. Bitcoin’s mining process proves real-world work was done, giving it inherent value.
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