During bungy jumping, kinetic energy is zero at the lowest point, raising questions about the relationship between elastic potential energy (P.E.) and gravitational P.E. The discussion highlights that potential energy is always measured relative to a reference point, which is not clearly defined. While one might consider the jump height or ground level as reference points, this leads to complications in comparing potential energies. It is emphasized that potential energies cannot be directly compared due to their arbitrary values, but changes in potential energy can be compared if they start from the same value. The conversation ultimately underscores the importance of defining reference points when discussing energy balance in this context.