Elon Musk Appears to Praise Bitcoin’s Energy Foundation Years After Criticizing Mining and Tesla Halting BTC Payments

• Elon Musk framed Bitcoin as energy‑based money, saying energy proves BTC’s scarcity.

• Tesla retains a portion of its Bitcoin treasury while it halted BTC payments in 2021 over miner energy concerns.

• Data: Tesla’s remaining 11,509 BTC (reported by BitcoinTreasuries) is valued near $1.28 billion; prior holding peaked at 43,200 BTC.

Bitcoin energy consumption: Elon Musk praises BTC’s energy foundation, outlining why energy underwrites scarcity—read COINOTAG’s analysis and implications for investors.

Published: October 14, 2025 · Updated: October 14, 2025 · Author: COINOTAG

What did Elon Musk say about Bitcoin’s energy consumption?

Elon Musk stated that Bitcoin’s energy consumption is central to its value, arguing that while governments can create fiat currency, energy cannot be faked. He presented this view as part of a broader discussion linking precious metals and BTC to hedges against monetary debasement driven by rising AI‑related spending.

Why does Musk claim “Bitcoin is based on energy”?

Musk’s statement echoes a common Bitcoin community rationale: new BTC enters circulation only when miners expend energy to validate blocks and earn rewards. He suggested that this energy expenditure creates an intrinsic anchor for scarcity. Michael Saylor, MicroStrategy’s co‑founder and executive chairman, reinforced the point, saying, “The laws of nature are superior to the laws of man.”

Context and data referenced in comments and past statements include the Cambridge Bitcoin Electricity Consumption Index (as a public estimate of network energy use) and BitcoinTreasuries (for corporate holdings). COINOTAG notes these sources as reference points without linking to external sites.



Timeline: Musk and Tesla’s stance on Bitcoin

Elon Musk’s public remarks on Bitcoin span a decade: a cautious early mention in 2014, denial of Satoshi Nakamoto speculation in 2017, Tesla’s acceptance of BTC as payment in early 2021, and a rapid reversal months later citing miner energy use. Tesla retained Bitcoin on its balance sheet but sold material stakes in two tranches: partial sales in May 2021 and a larger divestment in July 2022, the latter described at the time as driven by a reported “Bitcoin impairment.” According to BitcoinTreasuries, Tesla’s remaining holding is 11,509 BTC, roughly $1.28 billion at current prices; its peak holding was 43,200 BTC.

Frequently Asked Questions

How does Bitcoin mining energy use relate to scarcity and value?

Bitcoin mining requires computational work and electricity to validate transactions; miners are rewarded with newly issued BTC. This energy cost is often cited as proof of scarcity: unlike fiat, which can be printed, Bitcoin’s supply is constrained by protocol rules and the real‑world expenditure of energy to create new units.

Did Tesla stop accepting Bitcoin because of energy concerns?

Yes. In 2021 Tesla suspended BTC payments after citing concerns about rising energy usage by miners. The company said it would resume acceptance if a majority of mining activity used “reasonable clean energy,” which it described as a meaningful threshold for sustainable mining practices.

Key Takeaways

• Energy as an anchor: Musk framed Bitcoin’s energy consumption as a foundational proof‑point for scarcity and monetary trust.
• Corporate shifts: Tesla accepted BTC in early 2021, later halted payments over miner energy concerns and sold portions of its holdings by mid‑2022.
• Data and sources: Public data referenced includes the Cambridge Bitcoin Electricity Consumption Index and BitcoinTreasuries; COINOTAG reports these as non‑linked references for context.

Conclusion

Elon Musk’s recent comments reiterate a long‑standing argument within the Bitcoin community: that Bitcoin’s energy consumption underpins its scarcity in ways that fiat cannot replicate. COINOTAG reports this development with attention to public data and documented corporate actions—Tesla’s balance‑sheet moves and public energy metrics remain key indicators for investors watching environmental, social, and governance implications. For ongoing coverage and data‑driven updates, follow COINOTAG’s reporting.