Elon Musk revealed the main secret of Bitcoin's invulnerability: it's not about the issuance.
In recent days, the crypto community has once again turned to Elon Musk's landmark 2021 speech, where the billionaire explained why he considers bitcoin (BTC) a truly invulnerable system. Contrary to popular belief, the entrepreneur's key argument is not the limited supply of 21 million coins, but the architecture of the network itself. According to him, bitcoin has no "throat" that can be "squeezed."
This statement was made during The B Word panel discussion in July 2021, which also featured Jack Dorsey and Cathie Wood. Musk began with a philosophical definition of money as an "information system for the distribution of labor," then criticized traditional finance. Bank transfers, he said, take one to five business days, the ACH payment system is hopelessly outdated and insecure, and paying by card is comparable to handing your password to a stranger.
Decentralization as the core value
Musk sees bitcoin's main advantage not in transaction speed, but in the absence of a single point of failure. The network has no headquarters, board of directors, or regulator that can be pressured. "Bitcoin primarily solves a problem. It has no 'throat' that can be 'squeezed,' it is decentralized, no one can be forced to empty their bitcoin account in any way," Musk said at the time.
Indeed, this is a fundamental difference from the fiat system. It is impossible to force miners, nodes, or asset holders to act against their will — the network will continue to function as long as at least one participant exists.
What Tesla and SpaceX ultimately did
However, the billionaire also acknowledged the drawbacks: "Transaction volume is low, fees are high, it's difficult to use, but the potential is enormous." His position changed over time. Two months before that speech, Tesla refused to accept bitcoins for its cars, citing the environmental harm of mining. Later, the company purchased BTC worth $1.5 billion in early 2021, but by mid-2022 it had sold 75% of its position, raising $936 million.
SpaceX chose a different approach. According to documentation, the company has held 18,712 BTC since 2024, purchased for $661 million. Their market valuation fluctuated: $1.75 billion at the end of 2024 and $1.10 billion in June of this year. The coins remain on the balance sheet, although a test transfer of $88 in July sparked rumors of a sell-off. Public reporting later showed a paper loss of $539 million for the half-year, but the holdings were left untouched.
Tesla still holds 11,509 BTC on its balance sheet (purchased for $386 million), which have remained untouched since 2022. The second-quarter report showed a decline of $334 million for the half-year. In total, both Musk companies own 30,221 BTC, acquired for $1.05 billion. At the current price of around $78,500, this amounts to approximately $2.37 billion.
Notably, even after all the market fluctuations and criticism, Musk has not abandoned his long-term holding strategy. This further confirms: for him, bitcoin is not a speculative tool, but a fundamental protocol whose value lies in decentralization. In my view, this is one of the most accurate theses about the nature of BTC that investors should remember during periods of volatility.