Around Bitcoin (BTC), a discussion has reignited, with an old speech by Elon Musk at the center of attention. A fragment from 2021 has surfaced online, where the head of Tesla and SpaceX explains why he considers the first cryptocurrency invulnerable. And his argument, oddly enough, is not about limited supply or halvings, but about the very architecture of the network.
Musk stated that Bitcoin has "no throat that can be squeezed." This refers to fundamental decentralization: the absence of a single control center means there is no single point of failure. You cannot pressure a specific company or person to stop the entire system. This makes BTC resistant to external pressure—both from regulators and from market manipulators.
Bitcoin as an information system
Musk began his speech at The B Word conference in July 2021 (where Jack Dorsey and Cathie Wood also participated) with the philosophy of money, calling it "an information system for the allocation of labor." He then criticized traditional finance: bank transfers that take up to five business days he called a relic, and the ACH payment system—outdated and insecure. Paying by card, he compared to handing over a password to a stranger.
The main advantage of Bitcoin, according to Musk, is not speed. The network will not force anyone to compromise their principles. That is its strength: "Bitcoin primarily solves a problem. It has no 'throat' that can be 'squeezed,' it is decentralized, no one can be forced in any way to empty their bitcoin account."
What Tesla and SpaceX ultimately did
Musk, however, does not idealize BTC and acknowledges its weaknesses: low transaction volume, high fees, and difficulty of use. However, the potential, in his words, is enormous. And these words are backed by the actions of his companies.
The story with Tesla was not simple. In early 2021, the company bought BTC worth $1.5 billion, but by May it refused to accept it for cars due to "harmful emissions" from mining. By mid-2022, Tesla had sold 75% of its position, netting $936 million. At the same time, 11,509 BTC, purchased for $386 million, remained on the balance sheet. They have sat untouched since 2022, and the second-quarter report showed a decrease in value of $334 million over the half-year.
SpaceX chose a different tactic. The company has never sold its holdings. All documents since 2024 list 18,712 BTC, purchased for $661 million. Only the market valuation changed: $1.75 billion at the end of 2024 and $1.10 billion in June of this year. Even a test transfer of $88 in July, which sparked rumors of a sell-off, and a paper loss of $539 million over the half-year did not force SpaceX to touch its reserves.
In total, Musk's companies hold 30,221 BTC, acquired for $1.05 billion. At the current price of around $78,500, that is approximately $2.37 billion.
My view: It is telling that even after all the market swings and criticism, Musk retains faith in Bitcoin as a hedge against centralization. His argument about the "throat" is, in essence, the quintessence of BTC's value. In a world where governments and corporations increasingly control finances, the absence of a single point of failure remains the first cryptocurrency's main trump card. And the fact that SpaceX holds the coins even at a loss speaks to a long-term bet on this idea.