Tesla Inc. CEO Elon Musk reinforced his view that Bitcoin derives its value from energy rather than government backing during an interview that aired Sunday. The billionaire also provided updates on his Department of Government Efficiency initiative, which he described as an ongoing project despite recent speculation about its status.
What Happened: Energy-Based Currency
Musk told Indian entrepreneur Nikhil Kamath that Bitcoin represents a "fundamental" currency because it's grounded in physical energy consumption. "Energy is the true currency. This is why I said Bitcoin is based on energy," the SpaceX CEO said.
He argued that energy cannot be manufactured through legislation.
"You can't just pass a law and suddenly have a lot of energy. It's very difficult to generate energy, or especially to harness energy in a useful way to do useful work," Musk said.
The comments echo statements he made in October, when he noted that governments cannot "fake" Bitcoin the way they can with fiat currencies.
Bitcoin mining requires substantial electricity to power computers that solve cryptographic puzzles, a process that secures the network and introduces new coins into circulation.
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Why It Matters: Government Operations
Musk addressed his Department of Government Efficiency, known by the acronym DOGE, calling it an "interesting side quest" that revealed the "inner workings" of government operations. "So a bunch of things that DOGE did were just very common sense, things that would be normal for any organisation that cared about financial responsibility," he said.
The department dismissed reports of its closure last week, stating it would resume "regularly scheduled" updates. Musk confirmed the initiative continues to function.
"It's still going on, by the way. DOGE is still happening," he said.
The DOGE website lists approximately $214 billion in savings, with its most recent update posted Oct. 4. However, reports have questioned these figures, suggesting they may inflate actual savings by counting maximum possible contract values rather than confirmed spending reductions. The acronym shares its name with meme cryptocurrency Dogecoin, which saw increased trading activity following President Donald Trump's election victory and the announcement of the efficiency initiative.
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