TLDR
- Elon Musk praised Bitcoin on October 14, calling its energy-based model superior to government fiat currencies
- The Tesla CEO said energy cannot be faked unlike fiat money, making Bitcoin inflation-proof
- Musk’s comments came after nearly three years of silence on Bitcoin following the FTX collapse
- Bitcoin mining renewable energy usage now exceeds 55%, meeting Musk’s 2021 clean energy requirements
- Analysts link Bitcoin’s price gains to government spending on AI development and currency debasement
Elon Musk made his first serious Bitcoin comments in nearly three years on October 14, 2025. The Tesla and SpaceX CEO took to X to praise Bitcoin’s energy-based proof-of-work system. He contrasted the cryptocurrency with traditional fiat currencies that governments can print at will.
Musk stated that while governments throughout history have issued fake fiat currency, energy cannot be faked. This fundamental difference makes Bitcoin’s foundation more secure than government-backed money. His post emphasized Bitcoin’s protection against inflation caused by central bank money printing.
The billionaire’s comments responded to market analyst Zerohedge’s post about Bitcoin price trends. Zerohedge connected rising Bitcoin prices to government spending patterns. The analyst suggested global AI development funding would require currency debasement by major economies.
“AI is the new global arms race, and capex will eventually be funded by governments (US and China),” Zerohedge wrote. The post linked Bitcoin’s momentum alongside gold and silver to this spending pattern. Musk agreed with the assessment about energy’s role in Bitcoin’s value proposition.
Bitcoin’s Energy Foundation and Mining
Bitcoin operates on a proof-of-work system that requires computational energy to mine new coins. This energy requirement creates a tangible cost basis for the cryptocurrency. Unlike fiat money that central banks can create digitally, Bitcoin mining demands real-world energy expenditure.
Current data shows Bitcoin mining operations now use over 55% renewable energy sources. This figure comes from climate tech venture capitalist Daniel Batten and Bitcoin analyst Willy Woo. The percentage represents an all-time high for sustainable energy in mining operations.
This renewable energy milestone exceeds the threshold Musk set in 2021. Back then, Tesla suspended Bitcoin payments for vehicle purchases citing environmental concerns. The decision caused Bitcoin’s price to drop 6% within an hour from $54,800 to approximately $51,600.
Musk pledged at the time that Tesla would resume Bitcoin transactions once mining operations reached 50% clean energy usage. Despite meeting this requirement, Tesla has not commented on reinstating Bitcoin payments. The company still holds most of its Bitcoin purchased in early 2021.
Musk’s Previous Bitcoin Predictions
The October post marks Musk’s return to discussing Bitcoin after a long absence. His last serious comment came in November 2022 following the FTX exchange collapse. Bitcoin had dropped to $16,000 during that bear market period.
Musk predicted a “long winter” for cryptocurrency at that time. The FTX bankruptcy filing on November 11, 2022 triggered the downturn. The exchange collapse resulted from misappropriation of user funds totaling $8.9 billion in losses.
His prediction proved accurate as crypto markets entered an extended bear phase. However, Bitcoin has since recovered from those lows. The cryptocurrency’s resilience appears to validate Musk’s earlier statement that “BTC will make it.”
The timing of Musk’s return to Bitcoin commentary coincides with renewed interest in crypto markets. Bitcoin’s energy-based model continues attracting investors seeking inflation protection. Government spending on AI development may accelerate this trend as Zerohedge suggested.
Tesla maintains its Bitcoin holdings despite the payment suspension. The company has not sold the majority of its cryptocurrency assets. Whether Tesla will resume accepting Bitcoin for purchases remains uncertain.
