Elon Musk’s latest remarks on cryptocurrency, made during a podcast interview with Indian entrepreneur Nikhil Kamath (co-founder of Zerodha) this week, frame crypto currencies, and particularly Bitcoin, as a form of “real money” due to its intrinsic tie to energy consumption. Musk didn’t explicitly call crypto the outright “currency of the world,” but he positioned it as a superior, energy-backed alternative to fiat currencies, which he views as easily manipulable.
The trend of currency manipulation has been ongoing for decades, with recent examples such Vietnam’s State Bank purchasing of $18 billion in USD annually, amassing $90 billion reserves in 202 to suppress dong appreciation amid export booms. South African banks have also faced scrutiny this year on FX currency manipulations. Ethiopia’s March 2025 scandal, saw banks accused of speculative USD hoarding, widening birr rate gaps by 20-30%, inflating imports.
Europe, despite it’s solid banking protocols, has not been immune to currency manipulation with the Swiss National Bank (SNB) intervening with a €100B+ in forex sales to cap franc strength, protecting exporters such as major Swiss watch manufacturers and pharmaceuticals, during COVID volatility.
Key Quotes from Musk’s Interview:
- On Bitcoin’s energy link: “Bitcoin is based on energy… Bitcoin has a strong claim to being real money precisely because it is inextricably tied to energy expenditure.” Musk emphasized that Bitcoin’s proof-of-work mining requires real-world computational energy, making it “impossible to fake” unlike fiat, which governments can print infinitely.
- Energy as ultimate value: “Energy is the true money… You can issue fake fiat currency, and every government in history has done so, but it is impossible to fake energy.” He predicted fiat’s obsolescence in an AI-driven “abundance” era, where energy (and thus energy-secured assets like Bitcoin) becomes the de facto currency for advanced systems like robots and data centers.
- Broader crypto nod: While praising Bitcoin’s scarcity, Musk reiterated his long-standing affinity for Dogecoin (DOGE) as “the people’s crypto,” though he didn’t tie it directly to energy here.
These comments sparked a 5-7% surge in Bitcoin and Dogecoin prices within hours, with analysts noting Musk’s influence could accelerate corporate adoption amid 2025’s bull market.
Context of the Comments
The remarks came amid Musk’s broader discussion on the future economy in an age of AI abundance, where automation could eliminate scarcity and traditional money’s role in resource allocation. Hosted on Kamath’s “WTF is” podcast, the episode explored Musk’s visions for xAI, Tesla’s robotics, and global energy needs, tying into his recent advocacy for nuclear power and sustainable tech.
This aligns with Musk’s 2025 narrative of countering inflation and government overspending via a U.S. “Strategic Bitcoin Reserve,” as echoed by Sen. Cynthia Lummis. The timing follows Bitcoin’s new all-time high of $125,835.92, reached on October 6, 2025, fuelled by ETF inflows and pro-crypto U.S. policy shifts under a Trump administration, where Musk serves as an informal advisor. Critics like Peter Schiff dismissed it as hype, arguing gold remains “real money,” but Musk’s energy-Bitcoin thesis resonates in tech circles, positioning crypto as a hedge against fiat currency debasement.
Musk’s Crypto Exposure
Musk’s personal and corporate stakes in crypto underscore his bullish stance, blending speculation with strategic treasury diversification. As of late 2025:
- Personal Holdings: Musk has publicly disclosed owning Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE), estimating his portfolio at between $500-700 million (primarily BTC and DOGE). He accepts DOGE for personal merch (e.g., Tesla items) and has joked about it funding Mars missions. No major sales reported in 2025; his wealth ($350 billion net worth) amplifies indirect influence via X posts.
- Tesla (CEO): Tesla holds 11,509 BTC (valued at around $1.24 billion as of early 2025), unchanged since a 2022 partial sell-off. The company briefly accepted BTC payments in 2021 (halted over environmental concerns) but retains it as a balance sheet asset for “flexibility and returns.” No ETH or DOGE holdings disclosed; Musk’s 13% stake ties his compensation (a $56 billion package, under SEC review) to TSLA performance, indirectly benefiting from crypto volatility.
- SpaceX (Founder/CEO): SpaceX is a top corporate BTC holder with 8,285 BTC (worth $880 million mid-2025). In October 2025, it transferred $133-150 million in BTC (possibly for rebalancing or Starship funding), but reserves remain at above $850 million. The company funded the DOGE-1 lunar mission entirely in Dogecoin (2021), signaling experimentation. Musk owns 42% of SpaceX (valued at $350 billion), making crypto a key exposure.
Overall, Musk’s $2.5+ billion crypto exposure (personal + stakes) positions him as a crypto whale, with his comments often driving 10-20% price swings, highlighting his dual role as innovator and crypto market mover.
