Elon Musk has again explained why Bitcoin cannot be "squeezed": it's not about the issuance.
In recent days, the crypto community has once again been actively discussing Elon Musk's arguments in favor of Bitcoin. At the center of attention is his 2021 speech, where the billionaire explained why he considers BTC invulnerable. The entrepreneur's key thesis turned out to be unexpected: he named not the limited supply but the network's architecture as the main advantage. According to him, Bitcoin has "no throat that can be squeezed."
Bitcoin as an information system
Musk laid out his position at The B Word conference in July 2021, which was also attended by 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 moved on to criticize traditional finance: bank transfers take one to five business days, and he described the ACH payment system as outdated and insecure. Musk compared paying by card to handing over your password to a stranger.
The main advantage of Bitcoin, in his opinion, is not the speed of settlements but decentralization. "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," he stated. Indeed, the network has no headquarters, CEO, or regulator that could be pressured.
What Tesla and SpaceX ultimately did
However, Musk also noted weaknesses: "Transaction volume is low, fees are high, it's difficult to use, but the potential is enormous." His own position, however, changed repeatedly. Two months before the speech, Tesla refused to accept Bitcoins for its cars, citing the harm from mining. By mid-2022, the company had sold 75% of its positions, netting $936 million against an initial purchase of $1.5 billion in early 2021.
SpaceX chose a different tactic. The company never touched its reserves. Since 2024, 18,712 BTC, purchased for $661 million, have appeared in its reporting. Only the market valuation changed: $1.75 billion at the end of 2024 and $1.10 billion in June of this year. A test transfer of $88 in July sparked rumors of a sell-off, but public reporting showed a paper loss of $539 million for the half-year without any balance sheet movements.
Tesla still holds 11,509 BTC, purchased for $386 million and kept untouched since 2022. In total, both Musk companies own 30,221 BTC, acquired for $1.05 billion. At the current price of around $78,500, that is approximately $2.37 billion.
My view: Musk's 2021 statements remain relevant today. Decentralization is not just a technical detail but a fundamental barrier to any external pressure. However, as practice shows, even the most convinced BTC supporters can adjust their strategies depending on market conditions. The reserves of SpaceX and Tesla are more of a long-term bet on institutional adoption than on short-term profit.