Elon Musk Says Cryptocurrency Could Replace Cash
Tesla CEO Elon Musk said on a podcast that cryptocurrency could replace cash but that he is “neither here nor there on Bitcoin.
”It’s always fascinating to see the opinions of successful entrepreneurs in regards to Bitcoin and other cryptocurrencies. For example, NBA Mavericks owner and Shark Tank member Mark Cuban prefers gold to Bitcoin. Elon Musk, the CEO of Tesla and SpaceX, has a more favorable view of virtual currencies. He recently said on the Third Row Tesla Podcast that he believes cryptocurrencies could replace cash.
‘Neither Here nor There’
The subject of Bitcoin was raised during the podcast. Elon Musk was asked why he loves code but is not bullish on Bitcoin. His reply was that he was “neither here nor there” on Bitcoin. However, he did admit that the whitepaper by Satoshi Nakamoto was “pretty clever.” Musk went on to say that he does envision cryptocurrency becoming “effectively a replacement for cash.” This does not mean that he sees Bitcoin being all-conquering. Instead, he thinks Bitcoin will not become a primary financial database due to its utility being limited.
As for cash, Musk brings up the fact that it is becoming increasingly harder to use cash in everyday life. He points out that there are businesses that no longer accept cash payments. (It should be pointed out that businesses in the United States are obligated to accept fiat to settle debts, but the reality is that there are lots of establishments that now only accept debit and credit card payments.)
Elon Musk on Illegality
The primary concern that the Tesla CEO sees with cryptocurrency is it being used for illegal transactions. He states:
This sort of gets the crypto people angry, but there are transactions that are not within the balance of the law … and there are, obviously, many laws in different countries. And, normally, cash is used for these transactions. But, in order for illegal transactions to occur, cash must also be used for legal transactions. You need an illegal-to-legal bridge. That’s where crypto comes in.
Musk does add that he is not being judgmental of cryptocurrency. He believes that many things that are deemed illegal by governments should not be. While not being bullish on Bitcoin, it is interesting that Elon Musk is taking cryptocurrency seriously. Of course, he has no need to dabble in investing in crypto as he is currently worth just over US$31 billion. At the time of writing, Bitcoin is currently trading at $8,323, a drop of 3.10% over the last 24 hours.
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