Einstein's equation E=mc^2 illustrates the relationship between energy and mass, indicating that a small amount of mass can yield a significant amount of energy due to the large value of c (the speed of light). In relativity, total mass and energy are conserved, and the distinction between rest mass and relativistic mass is crucial for understanding energy conversion. The equation can be expressed as E = M0c^2 for objects at rest or E = Mrel c^2 for moving objects. The discussion clarifies that energy can indeed be converted into mass and vice versa, but the interpretation depends on whether one is considering rest mass or relativistic mass. Overall, the conversation emphasizes the complexities of mass-energy conversion in nuclear reactions and the importance of context in these discussions.