Elon Musk recently stated that future currencies will be defined by physical metrics like wattage, mass, and energy rather than traditional fiat. He shared these views during a podcast interview with his biographer, Walter Isaacson, recorded in August and released in October.
Charles Edwards, founder of Capriole Investments, suggests that Bitcoin already aligns with this energy-based model. His valuation framework calculates the fair price of Bitcoin based on electricity consumption, hardware efficiency, and total network hashrate.
Current market data shows Bitcoin trading at approximately $83,264, while its calculated Energy Value stands at $131,057. This indicates a gap of roughly 36%, suggesting the asset is currently trading below its energy-derived baseline.
The network hashrate recently recovered to over 1 zettahash per second after a dip from its October 2025 peak. Despite fluctuations in the dollar price of Bitcoin, which dropped significantly before stabilizing near $60,000 in June, the energy input remains high.
JPMorgan estimates the current production cost for Bitcoin at $85,000, a figure slightly above the current market price. While proof-of-work links Bitcoin to energy, analysts note that the asset does not currently incorporate the mass-based metrics Musk proposed.
