On Monday, Elon Musk, CEO of Tesla and SpaceX, appeared on the Third Row of Tesla Podcast to discuss a range of topics related to his past ventures, current work, and the technology’s future. At a time of the interview, Musk was asked to think about Bitcoin and other cryptocurrencies, a topic that he was known to tweet a little bit often.
“I’m not here or there on Bitcoin,” Musk said in terms of his general thinking on financial technology.
The Tesla CEO replied to Musk’s first lecture in Bitcoin’s Bitcoin White Paper of “I think it was pretty clever.” While Musk sees value in Bitcoin as a tool for illegal transactions, he does not appear to be a fan of the “digital gold” thesis on the asset as a store of value.
Crypto Is Resistant To Censorship Transactions
As Musk deepens his overall thinking and feelings about Bitcoin, his general thesis on cryptography became much clearer.
“The crypto people are angry about this kind of thing, but transactions are not within the scope of the law,” Musk said. “And, naturally, there are many laws in various countries. And cash is typically used for such purchases. Nevertheless, cash must also be used for legitimate transactions for illegal transactions to take place. You need a valid bridge illegally. When asked whether he specifically refers to dark web activities, Musk said, “It can’t be completely dark because otherwise how do you buy normal stuff? Yet cash is used even rarer these days.
Cash is becoming increasingly difficult to use. You can’t use cash in some cases. There is, therefore, a pressuring feature for unlawfully, quasi-legally and in some cases legally binding transactions. But it’s both legal and illegal. “While Musk sees Bitcoin as a medium for transfers that can’t otherwise happen, Tesla’s CEO also sees the need to create a connection between a black market fueled by encryption and the legal economy.
Bitcoin Is Not The Main Financial Database
While Musk finds Bitcoin useful for the ability to allow further illegal transactions in a cashless society, the idea that it will become a world reserve currency seems to be throwing cold water.
“Where I see crypto as a substitute for currency,” Musk said. “I don’t see crypto as the main database, but not as a substitute for real.” Billionaire investor Ray Dalio cautioned that Bitcoin might become an asset (such as gold) during an interview with CNBC at the beginning of this week. That said, figures from the second half of 2019 seem to suggest that Bitcoin is becoming a “digital gold” for market participants. This will be one of Bitcoin’s primary developments in 2020.
More institutional investors are expected to enter the market as Bitcoin heads into its third half-lift event, and are behind a variety of bullish predictions for the crypto assets in 2020. Only one business analyst has estimated that the Bitcoin price will hit $50,000 by year’s end.
In his last comment on the subject of Bitcoin, Musk demonstrated that he had no moral objection to cryptography.
“Sometimes that’s like I’m talking about crypto, but it’s really — there’s a lot of illegal stuff that doesn’t have to be illegal,” Musk stated. “I think governments have too many rules sometimes. It should be noted that Musk has been quite consistent over the years with his opinion on Bitcoin, as he shared similar thoughts about the topic back in 2014.