A video from 2021 has resurfaced online, in which Elon Musk explains why bitcoin (BTC) cannot be "killed." Contrary to popular belief, the billionaire's key argument is not the limited supply, but the network's very architecture. According to him, bitcoin has "no throat that can be squeezed."
Speaking at The B Word conference in July 2021 on a panel with Jack Dorsey and Cathie Wood, Musk began with a philosophical definition of money as an "information system for the allocation of labor." He then criticized traditional finance: bank transfers take one to five business days, the ACH system is outdated and insecure, and paying by card, in his metaphor, is akin to handing your password to a stranger.
The true value of bitcoin, Musk emphasized, lies not in transaction speed, but in its fundamental invulnerability. Such a network has no single point of failure — no headquarters, no CEO, no government that can be pressured. No one can force holders to empty their wallets or halt the entire system.
This statement remains highly relevant today. Decentralization is not just a buzzword, but real protection against repression and censorship. As long as bitcoin has no "throat," it cannot be strangled by administrative or coercive methods.
What Tesla and SpaceX ultimately did
Musk, however, does not idealize the asset. He noted the obvious drawbacks: low network throughput, high fees, and complexity of use. But the potential, he said, is "enormous."
The practices of Musk's companies confirm his words. Tesla, which bought BTC worth $1.5 billion in early 2021, had sold 75% of its position by mid-2022, netting $936 million. However, the automaker still holds 11,509 BTC on its balance sheet, purchased for $386 million and untouched since 2022.
SpaceX chose a different strategy. The company has never sold its holdings: since 2024, documentation has listed 18,712 BTC, purchased for $661 million. The market valuation of these assets has fluctuated from $1.75 billion at the end of 2024 to $1.10 billion in June of this year. Even a test transfer of $88 in July, which sparked rumors of a sell-off, did not lead to actual action — a paper loss of $539 million over six months did not prompt SpaceX to touch its reserve.
Together, Musk's two companies control 30,221 BTC, having spent $1.05 billion on them. At the current price of around $78,500, this is equivalent to approximately $2.37 billion.
Musk's stance is telling: he acknowledges bitcoin's imperfections as a payment method, but bets on its institutional value as a decentralized asset. Given that even volatility has not prompted his companies to offload their coins, it can be assumed that for Musk, bitcoin is a long-term hedge against the centralization of the financial system, not a tool for speculation.