Bitcoin needs a new narrative, and this has become a consensus. The market lacks reasons to buy Bitcoin. The market is not short of money; leading AI companies can rise by 10% in a day with trillions of dollars at stake.

Bitcoin has also gone through several rounds of narrative iterations:

The first narrative: decentralized currency. This narrative brought Bitcoin above $10,000 in 2019; but the problem with this narrative is obvious: a deflationary currency with significant price volatility does not meet the long-term development needs of an economy.

The second narrative: digital gold. Grayscale proposed this narrative in 2020, and it has continued to this day. However, this year, the price of real gold has risen more than Bitcoin, and the volatility of digital gold resembles that of a tech stock, not completely synchronizing with gold's safe-haven properties. Asset allocators with a preference for safe-haven assets tend to prefer buying gold directly.

What is the new narrative?

Yesterday, Musk mentioned Bitcoin in an interview, stating that he believes Bitcoin is an energy currency that aligns with physical fundamentals.

He believes Bitcoin, through its Proof-of-Work mechanism, requires the consumption of real electricity and computing power to ensure system security, thereby directly linking digital value with the energy of the physical world.

Musk emphasized, "You cannot create energy through legislation." Unlike fiat currencies that can be arbitrarily printed by governments or altered by laws, energy (and Bitcoin based on energy) is difficult to manipulate through political means, giving it a unique value.

Although this statement may sound somewhat clichéd, we might consider it from another angle: Bitcoin, like AI, is a digital resource created by consuming physical resources.

As economist Fu Peng recently mentioned, Bitcoin is somewhat like an AI stock that comes with buybacks, where so-called buybacks occur when production is halved periodically.

This also represents a new understanding of Bitcoin among many traditional investors; Bitcoin priced at over 100,000 is less certain than buying leading AI stocks; however, Bitcoin at 80,000 or 70,000 seems cheaper than Nvidia at a 30x P/E ratio.