July 20, 2024

‘I Don’t Spend Much Time Thinking About Cryptocurrency’ but Here’s Catch

Elon Musk made a curious statement about an ideal financial system in his head and Bitcoin

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During a recent Space event on Twitter/X, the platform’s owner Elon Musk had a discussion of various aspects of the world in the future, including financial markets, AI and cryptocurrency with Cathie Wood – CEO of Ark Invest and a vocal Bitcoin supporter.

Here is what he told the renowned investor and Ark Invest chief executive about Bitcoin and the financial system.

Musk does not think about crypto but here’s nuance

Answering Cathie Wood about what he thinks about the impact of Bitcoin on the monetary system, Musk stated that he does not “spend a lot of time thinking about cryptocurrency, hardly any at all.” However, he admitted that he has spent quite a great deal of time thinking about what actually money is.

For Musk, money is a database for allocating resources. For him, fiat currency is fine for resource allocation, however, he added that “if you have a predictable money supply and it doesn’t get inflated or deflated too much, it is rules-based and provided the government does not too much abuse the privilege to create more money”, that would be better, in Musk’s opinion.

We are “both on the crypto team”: Cathie Wood

He stated that “an unavoidable temptation to debase the money supply” in humanity goes back to the times when money was invented in any form, including in gold. Musk then liked a monetary system to an information system, stating that like the latter has “noise”, the former has inflation, high transaction time, fraud, etc, it would be great if all of these could be reduced in a financial system. For Musk, money is information moving on a network in general.

What Musk described pretty much describes cryptocurrency and Bitcoin in particular. Cathie Wood pointed at that, stating that she reckons that her point of view here coincides with Elon’s and that on this issue they are “both on the crypto team”.

Musk is a well-known supporter of the original meme cryptocurrency Dogecoin. In the past, he frequently endorsed DOGE, talking about it as of “people’s money” or posting memes related to it.

In 2021, Musk debuted on the SNL show, where he discussed Dogecoin with the anchors, thus giving DOGE an even bigger endorsement.

About the author

Yuri is interested in technology and technical innovations. He has been writing about DLT and crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. He has written for multiple crypto media outlets.

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

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