A 2021 video of Elon Musk explaining his support for Bitcoin has resurfaced in the crypto community. And his reasoning sounds even more compelling today than when it was first delivered. The founder of Tesla and SpaceX drew a conclusion that seemed paradoxical to many: BTC's main strength lies not in its limited supply, but in the very architecture of the network. In his words, Bitcoin has "no throat that can be squeezed."
Decentralization as absolute protection
Speaking in July 2021 at The B Word conference alongside Jack Dorsey and Cathie Wood, Musk began with the philosophy of money, calling it an "information system for the allocation of labor." He then criticized traditional finance: bank transfers take one to five business days, ACH is hopelessly outdated, and paying by card, in his metaphor, is akin to handing your password to a stranger.
Musk's key thesis was not speed or convenience, but resilience. Bitcoin has no single point of failure: no headquarters, no CEO, no authority that can be compelled to act. "Bitcoin is primarily solving a problem. There's no 'throat' to 'squeeze,' it's decentralized, nobody can be forced in any way to empty their bitcoin account," he stated at the time.
Tesla and SpaceX in practice: words vs. actions
However, Musk's position during that period was marked by contradictions. Two months before the speech, Tesla refused to accept BTC for its electric vehicles, citing the environmental harm of mining. Earlier, in early 2021, the company had bought bitcoins worth $1.5 billion, but by mid-2022 it had sold 75% of its position, netting $936 million.
SpaceX chose a different approach. Based on its reports, the company has never touched its holdings. Documents from 2024 show 18,712 BTC purchased for $661 million. Their market valuation fluctuated: $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 reserves remained untouched.
Tesla currently holds 11,509 BTC on its balance sheet (acquired for $386 million), which have not moved since 2022. In total, Musk's two companies control 30,221 BTC, purchased for $1.05 billion. At the current price of around $78,500, that amounts to approximately $2.37 billion.
My take: Musk may have wavered in tactics, but strategically he is right. Institutional holders like SpaceX demonstrate that Bitcoin is not a speculative asset, but a long-term insurance policy against inflation and regulatory arbitrariness. As long as such players do not sell even at a loss, the market retains its fundamental support. The only question is how many more corporations will follow this example.