Elon Musk's 2021 speech has resurfaced online, where he explained why he considers Bitcoin a truly invulnerable system. Contrary to popular belief, the entrepreneur's key argument is not the limited supply of 21 million coins. Musk emphasizes the network's architecture, which lacks a single point of failure.
Decentralization as the main defense
At The B Word conference in July 2021, where Jack Dorsey and Cathie Wood also spoke, Musk laid out an entire concept. He began with the nature of money, calling it an "information system for the allocation of labor." He then harshly criticized traditional finance: bank transfers take one to five business days, the ACH system is outdated and insecure, and paying by card, in his words, is "like giving your password to a stranger."
Musk sees Bitcoin's main advantage not in settlement speed, but in the fact that in such a network, no one can be forced to act against their principles. "Bitcoin has no 'throat' that can be squeezed. It's decentralized. No one can force you to empty your Bitcoin account," he stated. Indeed, the first cryptocurrency has no headquarters, no CEO who could be pressured.
The practice of Musk's companies: Tesla and SpaceX
It is worth noting that Musk's rhetoric did not always align with the actions of his companies. Two months before that speech, Tesla refused to accept BTC for its cars, citing the environmental harm of mining. At the same time, in early 2021, the company bought Bitcoin worth $1.5 billion, and by mid-2022 had sold 75% of its position, netting $936 million.
SpaceX chose a completely different tactic. The space company has never sold its holdings. According to documentation, since 2024 it has held 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 sparked rumors of a sell-off, but public reporting showed only a paper loss of $539 million for the half-year — the holdings were untouched.
Tesla still has 11,509 BTC on its balance sheet, purchased for $386 million. They have remained untouched since 2022. In its second-quarter report, the company recorded a $334 million decrease in value over six months. In total, both Musk companies hold 30,221 BTC, purchased for $1.05 billion. At the current price of around $78,500, that is approximately $2.37 billion.
My view: It is telling that, despite all the fluctuations and criticism, Musk has retained a significant corporate Bitcoin reserve. This suggests that his thesis about the network's invulnerability is not just PR, but strategic confidence in the long-term value of a decentralized asset. For the market, this is a strong signal, especially against the backdrop of institutional adoption.