Elon Musk on Bitcoin: "it has no throat to squeeze"
Returning once again to the fundamental questions of digital assets, I analyzed a 2021 video that has recently resurfaced in discussions, where Elon Musk outlines his vision of the nature of Bitcoin. Contrary to the widespread belief that the main trump card of the first cryptocurrency is its limited supply of 21 million coins, the entrepreneur emphasizes the network's architecture. According to him, the key feature of BTC is the absence of a "bottleneck" that could be squeezed. This means the system has no single point of failure, no company or individual who could be pressured to stop or alter the operation of the entire network.
Bitcoin as an information system
Musk voiced his position back in July 2021 at The B Word conference, where his interlocutors were Jack Dorsey and Cathie Wood. He began with a philosophical definition of money, calling it an "information system for the allocation of labor." The entrepreneur then criticized traditional banking infrastructure: he pointed out that interbank transfers can take from one to five business days, and the ACH payment system is hopelessly outdated and insecure. He compared paying by card to handing over your password to a stranger.
Musk sees Bitcoin's true value not in transaction speed, but in its decentralized essence. "Bitcoin primarily solves a problem. It has no 'bottleneck' that can be 'squeezed.' It is decentralized, and it is impossible to force anyone in any way to empty their bitcoin account," he stated. And this is indeed true: Bitcoin has no head office, no CEO who can be pressured.
What Tesla and SpaceX ultimately did
However, Musk does not idealize the asset. He acknowledged its weaknesses: low throughput, high fees, and complexity of use for the average user. Nevertheless, he emphasized the enormous potential of the technology.
It is interesting to trace how his companies implemented these ideas in practice. Tesla, as is known, initially accepted BTC for car payments but abandoned this practice two months later, citing environmental harm from mining. At the same time, the company purchased bitcoins worth $1.5 billion in early 2021, and by mid-2022 had sold 75% of its position, netting $936 million.
SpaceX chose a different tactic. According to documentation, starting in 2024, the company's balance sheet holds 18,712 BTC, purchased for $661 million. Their market valuation fluctuated from $1.75 billion at the end of 2024 to $1.10 billion in June of this year. Notably, even a test transfer of $88, which sparked rumors of a sell-off, and a subsequent paper loss of $539 million over the half-year did not force SpaceX to touch its reserves.
Tesla still holds 11,509 BTC on its balance sheet, purchased for $386 million, and they have not moved since 2022. 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.
My analysis: Musk's strategy is a classic example of long-term institutional holding, despite tactical fluctuations. Tesla's sale was most likely driven by corporate necessity rather than a change in fundamental views on the asset. The fact that SpaceX retained its coins even during turbulent times confirms that, for Musk, Bitcoin remains a strategic reserve, protected by its very architecture from external interference.