Elon Musk Sparks New Debate by Calling Bitcoin a True Energy-Backed Currency

Elon Musk has reignited the long-running debate over Bitcoin’s intrinsic value, describing the cryptocurrency as a true energy-backed asset. In a newly surfaced interview clip with entrepreneur Nikhil Kamath, Musk emphasized that Bitcoin’s strength comes from the fact that it is built on energy—something governments cannot print or fabricate. According to him, energy remains the “real currency,” and Bitcoin reflects that principle because creating and using energy efficiently is inherently difficult. This limitation, he argued, creates a natural barrier that supports Bitcoin’s value and could shape future economic systems.

Musk’s comments circulated just as economist Peter Schiff renewed his criticism of Bitcoin. Schiff claimed Bitcoin isn’t declining because it’s a risk asset, but because he sees it as a “fake asset” with no real fundamentals. He compared its performance to the Nasdaq, arguing that investors are shifting toward what he considers “real assets.” Schiff also attacked Michael Saylor’s strategy, alleging that the company cannot maintain preferred-share dividends without selling additional shares or liquidating Bitcoin holdings—likening the structure to a Ponzi scheme. Despite this, Saylor has hinted at more Bitcoin purchases, signaling his continued long-term confidence.

Meanwhile, market data shows rising pressure in the derivatives sector. According to Whale Insider, over $7.8 billion in short positions could be liquidated if Bitcoin surges to $100,000. CoinGlass data further reveals growing clusters of leveraged shorts above $91,000, meaning a price breakout could trigger massive forced buybacks. Such liquidations often accelerate upward momentum, especially when large exchanges like Binance, OKX, and Bybit are showing heavy concentrations of short positions near key resistance levels.

Analysts note that this imbalance—short-biased traders versus persistent long-term buyers—creates conditions ripe for a sharp upward move. With accumulating catalysts and increasing short-squeeze risk, Bitcoin’s path toward the $100,000 mark appears increasingly plausible as market pressure builds.