Billionaire entrepreneur Elon Musk has once again weighed in on the fundamental value proposition of Bitcoin, declaring the cryptocurrency’s energy-intensive base as a superior foundation to government-issued fiat currency.
Responding to a viral post by market commentator Zerohedge on X (formerly Twitter), Musk asserted, “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 quickly went viral, reframing the debate around Bitcoin’s “Proof-of-Work” system as a “proof-of-energy” asset. This perspective aligns Bitcoin with hard assets like gold and silver as a scarce digital commodity, especially amidst growing concerns over global government spending, AI infrastructure, and a surging demand for energy.
Zerohedge’s initial post argued that the massive capital expenditures required for the global AI arms race will ultimately be funded by governments, leading to further currency devaluation and pushing investors toward hard assets.
Musk’s statement echoes a long-standing argument from Bitcoin proponents, including MicroStrategy’s Michael Saylor, who have consistently described BTC as “digital energy.”
Market Reaction Subdued Despite Endorsement
Despite the high-profile endorsement, Bitcoin’s market reaction remained muted. The world’s largest cryptocurrency traded at $111,836, reflecting a drop of nearly 3% in the past 24 hours. The subdued performance comes amid continued investor caution following a recent market crash.
Tesla’s Bitcoin Holdings Near Record High
The renewed conviction from Musk comes as his company, Tesla, maintains one of the largest corporate Bitcoin treasuries. According to Arkham Intelligence, Tesla’s Bitcoin holdings reached an all-time high value of approximately $1.4 billion in October 2025, marking its highest level since May 2022.
Musk has previously compared the encryption behind X’s upcoming chat platform to “Bitcoin-style encryption” and, as of March 2022, publicly stated that he owns and has no plans to sell his Bitcoin, Ethereum, or Dogecoin holdings, viewing scarce assets as a hedge against inflation.
