Tesla Founder Elon Musk Believes that Bitcoin is Better than Paper Money, and Here’s Why
Originally published on: CoinSpeaker
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February 20, 2019
Saying that he believes in Bitcoin, Musk also explained why his companies are not yet involved in using and applying this technology.
The community of those predicting great future of cryptos has welcomed a new member. Elon Musk, founder and CEO of Tesla and SpaceX, has officially confirmed his belief in digital currencies and said that cryptos provide a better alternative to conventional money.
On February 19, Musk had a podcast interview with investment firm ARK Invest. He spoke about future plans and strategies of his companies, discussed the development of virtual coins and shared his own view on cryptos, Bitcoin in particular.
According to Musk, Bitcoin has “quite brilliant structure”. He said:
“It [crypto] bypasses currency controls. … Paper money is going away. And crypto is a far better way to transfer values than a piece of paper, that’s for sure.”
However, his companies are not yet involved in using and applying this technology. Musk explained that by high energy intensity of cryptos.
“One of the downsides of crypto is that computationally it is quite energy intensive. So there have to be some kind of constraints on the creation of crypto. But it’s very energy intensive to create the incremental Bitcoin at this point.”
Further, Elon Musk said:
“It would not be a good use of Tesla resources to get involved in crypto. We’re just really trying to accelerate the advance of sustainable energy.”
Musk’s Twitter profile was used several times by scammers who tried to create crypto give-away schemes. Musk noted such development and made the following remark:
“Bitcoin and ethereum scammers were so rampant on Twitter I decided to join in and I said at one point wanna buy some bitcoin?”
Anyway, Musk supports cryptos’ development and believes that they can change the financial world.
Cryptos To Get A Strong Army Of Admirers
The world can be divided into two parts: those who show skepticism about blockchain and cryptos and that’s why take the crypto winter for granted, and those who are sure that cryptos own great potential and are worth to bet on. Among the latter are many eminent investors and public figures. For example, a billionaire Tim Draper is very brave in his judgments. He said that fiat will lose its dominant status, as cryptos are safer and more trustworthy.
Draper shared his opinion:
“The criminals will still want to operate with cash, because they catch everybody who is trying to use Bitcoin.”
Institutional investors are also starting to explore the crypto industry. Recently, Grayscale Investments published the 2018 annual report that demonstrates an increase in Bitcoin investment despite the long-lasting bear market.
The report shows that investments in Bitcoin products have increased, and it is notable that the number of institutions interested in such investments has also increased. Moreover, there is an opinion that cryptos can be a long-term and profitable investment for institutions, that’s why they should explore this industry.
Another good news for crypto enthusiasts is the recent market recovery. As we have recently reported, the crypto market is showing good signs of revival, with the overall cryptocurrency market cap surging by over $15 billion. On February 19, Bitcoin surged by 5.09%, approaching $4,000 per coin.
Other currencies have also shown a good result, with Ethereum increasing by over 10%, XRP gaining 8%, and EOS surging by 20%, which made its spot in the top five cryptocurrencies beating the likes of Bitcoin Cash and Litecoin.