Daijiworld Media Network – San Francisco
San Francisco, Oct 15: In yet another dramatic turn, Tesla and SpaceX CEO Elon Musk has expressed renewed support for Bitcoin, calling it an “energy-based” asset that underpins its true value. The billionaire’s endorsement marks a sharp reversal from his earlier criticism of the cryptocurrency’s high energy consumption.
In a post on X (formerly Twitter) on October 14, Musk responded to a user who suggested that governments were fueling an “artificial intelligence arms race” by printing excessive money, which in turn had driven the prices of gold, silver, and Bitcoin to record highs. The user concluded, “But you can’t print energy.”
Agreeing with the statement, Musk wrote, “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 comment has been widely interpreted as a significant shift from Musk’s earlier views. In 2021, Tesla briefly accepted Bitcoin as payment for its electric vehicles — a move that sent the cryptocurrency’s price soaring. However, within two months, Musk halted the initiative, citing concerns about Bitcoin mining’s environmental impact and energy use. The decision triggered a massive sell-off, erasing billions in market value.
Later, in July 2022, Tesla announced that it had sold off 75% of its Bitcoin holdings. “As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency,” Tesla said in its quarterly report that year. Despite the sell-off, on-chain data from analytics firm Arkham Intelligence indicates that Tesla still holds around 11,509 BTC — currently valued at about USD 1.3 billion.
Musk’s renewed remarks come amid reports of his growing interest in cryptocurrency-linked political and financial initiatives. Earlier this year, he revealed that his new political outfit, the “America Party,” would embrace Bitcoin. Responding to a question on whether the party would support cryptocurrency, Musk had quipped, “Fiat is hopeless, so yes.”
With Bitcoin once again gaining traction and crossing new price milestones, Musk’s latest endorsement could rekindle optimism among crypto investors — and reignite debates over the future of digital currencies in an increasingly energy-conscious world.