Around Bitcoin, a discussion has flared up once again, with Elon Musk at the center of attention. His 2021 speech, where he explained why he considers BTC a truly invulnerable asset, has resurfaced online. And it's not about the limited supply, as one might assume. Musk's key argument is the architecture of the network itself: Bitcoin has no "bottleneck" that can be squeezed.
This statement was made at The B Word conference in July 2021, where Musk was joined by Jack Dorsey and Cathie Wood. The billionaire began with a philosophical definition of money as an "information system for the distribution of labor," then criticized traditional banking infrastructure. According to him, transfers between banks take one to five days, the ACH payment system is hopelessly outdated and insecure, and paying by card is essentially handing your password to a stranger.
Bitcoin's main advantage, Musk emphasized, is not transaction speed but decentralization. In such a network, it's impossible to pressure specific individuals or companies to halt the entire system. Bitcoin has no headquarters, no CEO who can be leaned on.
"Bitcoin primarily solves a problem. It has no 'bottleneck' that can be 'squeezed,' it is decentralized, no one can be forced to empty their bitcoin account in any way," Musk stated.
At the same time, he honestly acknowledged the drawbacks: low throughput, high fees, and complexity of use. However, the potential, in his view, is enormous.
What Tesla and SpaceX ultimately did
Interestingly, Musk himself has repeatedly changed his stance on BTC. Two months before that speech, Tesla refused to accept bitcoin for its cars, citing the environmental harm of mining. However, the company already held $1.5 billion worth of BTC, purchased in early 2021. By mid-2022, Tesla had sold 75% of its position, netting $936 million.
SpaceX chose a different strategy. The company has never sold its holdings. Since 2024, SpaceX's reports have listed 18,712 BTC, purchased for $661 million. Only their market valuation has changed: $1.75 billion at the end of 2024 and $1.10 billion in June of this year. Even the July test transfer of $88, which sparked rumors of a sell-off, did not lead to real action. A six-month "paper" loss of $539 million did not prompt the company to touch the asset.
Tesla still holds 11,509 BTC on its balance sheet, purchased for $386 million. They have not moved since 2022. Thus, both Musk companies control 30,221 BTC, acquired for $1.05 billion. At the current price of around $78,500, that's approximately $2.37 billion.
My comment as an analyst: It's telling that even after Tesla's partial sale, SpaceX demonstrates strategic patience, not succumbing to panic during bearish stretches. This confirms that for Musk, bitcoin is not a speculative tool but a long-term insurance asset. However, one should not forget: his rhetoric is also part of the market, and any statements from the billionaire can move the price more than fundamental indicators.