Elon Musk’s bold targets of tackling extra spending and inefficiencies within the US federal authorities might have been futile, nevertheless it might need been the catalyst for his altering tune on Bitcoin.
So, why is @elonmusk lastly speaking about Bitcoin’s intrinsic connection to physics and vitality?
As @DSBatten eloquently explains, Elon has firsthand expertise making an attempt to cease extra authorities spending with @DOGE.
“He is run that experiment and he is aware of that it’s not potential… pic.twitter.com/pmLodj8Yf6
— Gareth Jenkinson (@gazza_jenks) December 1, 2025
The Tesla and SpaceX founder went viral on social media after suggesting that Bitcoin would substitute fiat cash due to it’s intrinsic connection to bodily vitality. Musk made the feedback in dialog with Indian entrepreneur Nikhil Kamath:
“Vitality is the true forex. That’s why I say Bitcoin is predicated on vitality.”
“You may’t legislate vitality. You may’t simply go a regulation and abruptly have quite a lot of vitality. It’s very troublesome to generate vitality, or particularly to harness vitality in a helpful technique to do helpful work,” Musk stated.
Naturally, the viral clip was shared broadly by Bitcoin advocates and business specialists. It’s also one of many first instances Musk has publicly spoken about Bitcoin lately. He went on to to inform Kamath that society might transfer away from the prevailing fiat money-based system.
“We in all probability gained’t have cash. We’ll simply have energy era because the defacto forex,” Musk stated.
DOGE failure pushed Elon again to Bitcoin
Bitcoin mining advocate Daniel Batten instructed Cointelegraph’s Chain Response present that Musk’s futile efforts to help the Trump administration to deal with extra authorities expenditure have inevitably modified his notion on the monetary system.
Now, this can be a present I’ve wished to do for some time!@DSBatten, Bitcoin misinformation detector and bringer of receipts, joined @gazza_jenks and me to speak @elonmusk‘s sensible phrases, the media’s portrayal of mining, and the slew of Technique tales.https://t.co/o7Y28Q9yoI
— Robert Baggs (@rkbaggs) December 1, 2025
“Elon’s been on a journey as a result of he began off sincerely believing that it was potential to rein in authorities spending inside a fiat-based financial system. And he needed to run that experiment, arrange DOGE and have it fail,” Batten stated.
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Batten stated that Musk’s efforts to get the Division of Authorities Effectivity (DOGE) to assist deal with the US’ spiralling debt downside ended up being an experiment that opened his eyes to the truth of fiat financial coverage.
“He is aware of that it’s not potential to rein in authorities spending when you have got entry to infinite cash printing, then it’s a must to have one thing which decouples cash from the power to infinitely print cash.”
Batten added that Musk’s background in physics means that he’s now realizing that energy-backed financial protocols are basically proof against inflation.
“Due to his background in physics, he’s clearly gone effectively, vitality, that’s not one thing you possibly can print into existence. That’s a basically higher technique to create sound cash. So steadily he’s coming towards a conclusion that Bitcoin is it.”
Bitcoin mining’s notion is lastly altering
Batten additionally weighed in on the altering notion towards the environmental affect of Bitcoin lately. All through the 2010s, mainstream media continuously portrayed Bitcoin’s vitality use as considerably dangerous for the setting.
These reviews and the overarching narrative have largely been debunked due to a number of tutorial papers and analysis reviews, together with Cambridge’s 2024 Digital Mining Business Report.
Batten stated that European policymakers have been significantly influenced by years of faulty reviews on Bitcoin’s environmental affect.
“They’ve created insurance policies based mostly on the factually incorrect soundbite that Bitcoin makes use of quite a lot of vitality per transaction, which it doesn’t, in fact.”
Batten clarified that Bitcoin’s vitality use comes immediately from mining, not by means of particular person transactions, which he described as ‘critically vital to grasp’ as a result of the community can theoretically course of 1000’s extra transactions while not having to expend extra vitality.
“The second you have got this per-transaction metric, it suggests one thing very insidious, which is, it’s unscalable as a result of as you scale extra, then vitality use goes to go up as effectively. And quite a lot of regulators in Europe nonetheless imagine that,” Batten stated.
For a complete deep-dive into the ins and outs of Bitcoin mining, take a look at Cointelegraph’s 2025 Bitcoin mining deep dive.
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