Tesla CEO Elon Musk has publicly reaffirmed his belief in bitcoin as a unique, energy-backed monetary system, breaking a prolonged period of silence on the topic.
Musk explains bitcoin’s energy basis
During a recent podcast appearance, Musk referred to bitcoin as a “fundamental physics-based currency,” emphasizing its grounding in real-world energy expenditure. He stated:
“Energy is the true currency. This is why I said Bitcoin is based on energy. You can’t legislate energy. You can’t just, you know… pass a law and suddenly have a lot of energy.”
Musk highlighted the difficulty of generating and harnessing energy, drawing a parallel to bitcoin’s proof-of-work consensus mechanism, which requires significant computational effort and electricity.
Kardashev scale and civilizational progress
Elon Musk also invoked the Kardashev scale—a method of measuring a civilization’s energy consumption—as a framework for understanding progress.
He suggested that societies should be evaluated based on their ability to utilize and control energy, an idea reflected in bitcoin’s design.
The end of money?
Looking ahead, Musk proposed that advances in artificial intelligence and robotics might eventually eliminate the need for money as a medium of exchange. He said:
“But, in a future, where anyone can have anything, I think that you no longer need money as a database for labor allocation.”
Musk cited Iain M. Banks’ Culture series as an inspiration, envisioning a post-scarcity world run by super-intelligent machines where money becomes irrelevant.
