In a recent podcast discussion with Nikhil Kamath, Tesla and SpaceX CEO Elon Musk revived discussions about Bitcoin by emphasizing its energy-based foundation, suggesting it holds fundamental value in the context of real-world energy consumption. He detailed how Bitcoin’s reliance on ‘proof-of-work’ – requiring significant computational power and electricity to maintain network security – reflects energy scarcity as a core driver of its value.
Musk further elaborated on this by referencing the Kardashev scale, a measure of civilization’s energy consumption, suggesting that assessing a society’s progress through energy capabilities mirrors Bitcoin’s inherent design principles. He envisions a future where AI and robotics could render currency obsolete, potentially leading to a post-scarcity era without centralized monetary systems.
His comments also highlight Bitcoin’s unique attributes, such as its resistance to political influence and governments’ ability to print fiat currency compared to the energy-based creation process of Bitcoin. Musk acknowledged that while he sees energy as a fundamental measure of value in the future, traditional currencies still dominate today’s economy.
Despite Musk’s optimistic view of Bitcoin’s future, the cryptocurrency experienced a price drop on Monday morning, falling over 8% to reach around $84,000. This downward trend follows a two-month decline since reaching an all-time high in October and highlights the volatility currently present in the market.