Elon Musk: Bitcoin Could Remain Valuable in a Post-Money Future

Source: DefiPlanet Original Title: Elon Musk: Bitcoin Could Remain Valuable in a Post-Money Future Original Link:

Quick Breakdown

• Elon Musk predicts traditional money may lose relevance as AI and robotics meet human needs.
• Bitcoin’s proof-of-work ties value to energy, making it a potential store of value in a post-money world.
• Control over energy could become a key economic factor, reinforcing Bitcoin’s role in the crypto ecosystem.

AI, Robotics, and the Decline of Traditional Currency

Tesla CEO Elon Musk has outlined a vision in which Bitcoin could persist as a measure of value even if traditional currencies become obsolete. Speaking on a podcast with Indian investor Nikhil Kamath, Musk suggested that advances in artificial intelligence (AI) and robotics could eventually satisfy human needs, reducing the necessity of money as a mechanism for labour allocation.

Musk referenced the Culture series by Scottish author Iain Banks, which depicts a fictional post-scarcity society in which individuals can acquire goods without money. “If AI and robotics are big enough to satisfy all human needs, then money is no longer… its relevance declines dramatically,” he said. In such a scenario, conventional currencies could lose their central role in commerce and economic activity, as AI-driven systems deliver goods and services efficiently without requiring human labour.

Energy as Currency and Bitcoin’s Enduring Role

Despite the potential decline of traditional money, Musk argued that certain forms of value would remain relevant, specifically energy. He described energy as a “fundamental currency” rooted in physics rather than in political systems, and linked it to Bitcoin. The cryptocurrency’s proof-of-work model converts electricity and computational power into digital scarcity, making it resistant to manipulation by central banks or governments. Musk suggested that control over efficient, abundant energy sources could become a key determinant of economic power, with Bitcoin serving as an energy-backed store of value.

Musk did not provide a timeline for this transition, noting that it depends on AI and robotics achieving levels capable of meeting all human needs. Currently, national currencies and traditional payment systems remain the primary means of exchange, while Bitcoin serves as both a tradable asset and an alternative store of value.

Notably, Musk’s X launched a ‘Bitcoin-Style’ Encrypted Messaging Feature, XChat, a messaging tool offering audio/video calls, file sharing, and disappearing messages.