Elon Musk’s formidable targets of tackling extra spending and inefficiencies within the US federal authorities might have been futile, however it may need been the catalyst for his altering tune on Bitcoin.
So, why is @elonmusk lastly speaking about Bitcoin’s intrinsic connection to physics and power?
As @DSBatten eloquently explains, Elon has firsthand expertise attempting to cease extra authorities spending with @DOGE.
“He is run that experiment and he is aware of that it’s not attainable… 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 power. 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 power.”
“You possibly can’t legislate power. You possibly can’t simply move a regulation and immediately have a variety of power. It’s very tough to generate power, or particularly to harness power in a helpful approach to do helpful work,” Musk mentioned.
Naturally, the viral clip was shared extensively by Bitcoin advocates and trade specialists. It’s also one of many first instances Musk has publicly spoken about Bitcoin lately. He went onto to inform Kamath that society might transfer away from the prevailing fiat money-based system.
“We most likely gained’t have cash. We’ll simply have energy technology because the defacto forex,” Musk mentioned.
DOGE failure pushed Elon again to Bitcoin
Bitcoin mining advocate Daniel Batten advised Cointelegraph’s Chain Response present that Musk’s futile efforts to help the Trump administration to handle 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 attainable 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 mentioned.
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Batten mentioned that Musk’s efforts to get the Division of Authorities Effectivity (DOGE) to assist handle the US’s spiralling debt downside ended up being an experiment that opened his eyes to the fact of fiat financial coverage.
“He is aware of that it’s not attainable to rein in authorities spending when you’ve entry to infinite cash printing, then you must 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 essentially immune to inflation.
“Due to his background in physics, he’s clearly gone effectively, power, that’s not one thing you’ll be able to print into existence. That’s a essentially higher approach 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 consistently portrayed Bitcoin’s power use as considerably unhealthy for the surroundings.
These studies and the overarching narrative have largely been debunked because of a number of tutorial papers and analysis studies, together with Cambridge’s 2024 Digital Mining Trade Report.
Batten mentioned that European policymakers have been significantly influenced by years of misguided studies on Bitcoin’s environmental affect.
“They’ve created insurance policies primarily based on the factually incorrect soundbite that Bitcoin makes use of a variety of power per transaction, which it doesn’t, after all.”
Batten clarified that Bitcoin’s power use comes immediately from mining, not by particular person transactions, which he described as ‘critically necessary to know’ as a result of the community can theoretically course of 1000’s extra transactions while not having to expend extra power.
“The second you’ve this per-transaction metric, it suggests one thing very insidious, which is, it’s unscalable as a result of as you scale extra, then power use goes to go up as effectively. And a variety of regulators in Europe nonetheless imagine that,” Batten mentioned.
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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