Elon Musk, owner of the X social media platform, posted recently that Bitcoin is based on energy, and further stated energy can not be faked like fiat issued by governments.

Bitcoin operates on a decentralized network secured by a consensus mechanism called Proof-of-Work (PoW), which fundamentally ties the cryptocurrency’s integrity and value to real-world energy expenditure. At its core, PoW requires participants, known as miners, to perform intensive computational tasks to validate transactions and add new blocks to the blockchain. These tasks involve solving complex cryptographic puzzles, which demand significant processing power from specialized hardware like ASICs (Application-Specific Integrated Circuits). This computation isn’t arbitrary; it’s a deliberate design to make it computationally expensive and energy-intensive to alter the blockchain, ensuring security against attacks like double-spending.

Bitcoin’s network currently consumes around 127 terawatt-hours (TWh) of electricity annually—comparable to the usage of countries like Sweden or Ukraine, or roughly 0.5-0.7% of global electricity. In the U.S. alone, crypto mining (dominated by Bitcoin) accounts for 0.6% to 2.3% of national electricity use.