Elon Musk has reignited a Bitcoin debate after calling the cryptocurrency “based on energy” and better than fiat. The Tesla and SpaceX boss said no government can fake energy, but all have printed fake money.

His post came as market confidence remains shaky after recent sell-offs. Despite that, Musk’s words added fresh focus on Bitcoin’s real-world link to energy and scarcity as inflation keeps rising worldwide.

Musk Links Bitcoin to Energy and AI Growth

Earlier on October 14, Elon Musk replied to a post by Zerohedge that connected the global AI arms race with rising demand for hard assets like gold and Bitcoin. Zerohedge wrote that governments will fund AI growth by printing money, but “you can’t print energy.”

Musk agreed, saying Bitcoin stands apart because it runs on energy. He wrote, “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.”

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.

— Elon Musk (@elonmusk) October 14, 2025

His statement turned Bitcoin into what he called a “proof-of-energy” system, one built on computation, not policy. The comment fits ongoing talks about how energy shapes value in the AI era. As data centers and AI projects consume more power, Bitcoin’s link to energy use looks stronger.

Musk’s comment also echoed an old BTC idea: energy equals trust. Mining costs create scarcity, making Bitcoin harder to manipulate. That model contrasts with fiat systems, where money supply grows whenever governments expand spending.

Market Response and Investor Mood

Bitcoin showed little movement after Musk’s post. As per data by Coingecko, BTC traded at $110,810, dropping 3.9% in 24 hours, as of the time of writing. Clearly, traders have remained cautious after recent losses across the crypto market.

Still, Musk’s posts often move markets. His opinions can spark wild price swings, especially in meme coins like Dogecoin. Even when Bitcoin stays flat, his remarks reshape debate about value and money creation.

Musk’s latest post may encourage investors to review the cryptocurrency’s fundamentals. The idea that real energy backs Bitcoin appeals to those losing faith in printed money as inflation keeps rising.

Musk’s BTC Holdings and Past Remarks

Musk has linked Bitcoin’s design to technology before. In June, he said X’s new chat feature, XChat, uses “Bitcoin-style encryption” written in Rust for tighter security.

“All new XChat is rolling out with encryption, vanishing messages and the ability to send any kind of file. Also, audio/video calling. This is built on Rust with (Bitcoin style) encryption, whole new architecture,” Musk said. 

In March 2022, he confirmed that he still owns Bitcoin, Ethereum, and Dogecoin and doesn’t plan to sell. He believes scarce digital assets hold value better than fiat during inflation. His view aligns with Michael Saylor’s idea of BTC as “digital energy.” Both argue that energy use proves real value. 

As a general principle, for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high.

I still own & won’t sell my Bitcoin, Ethereum or Doge fwiw.

— Elon Musk (@elonmusk) March 14, 2022

According to data by Bitcoin Treasuries Net, Elon Musk’s Tesla owns a total of 11,509 BTC as of October 14, 2025. These coins are worth approximately $1.27 billion per current prices with each coin purchased at averagely $33,539.