Elon Musk has shared his perspectives on the future of Bitcoin, giving insights as to why it could dethrone fiat money, especially in the face of escalating global inflation and economic uncertainties.
Speaking on Thursday during a podcast interview with ARK Invest head Cathie Wood on X (formerly Twitter), the billionaire addressed queries about the potential impact of cryptocurrency on the financial system.
Musk on Money Printing
Despite acknowledging his limited focus on cryptocurrency when asked about his take on Bitcoin’s growing uptake, Musk delved into a thoughtful exploration of the fundamental nature of money. Musk underscored the importance of a predictable money supply, adherence to rules, and government restraint in creating more money.
“I don’t spend a lot of time thinking about cryptocurrency hardly any at all. I have thought for a long time about money and the nature of money…it’s really a database for resource allocation if you have a predictable money supply, and it doesn’t get inflated or deflated too much and provided government does not abuse their privilege to create more money,” said Musk.
Musk’s reflections on money extended to its role in transactions and networks. He likened inflation to adding noise to the system, with transaction rate affecting latency and fraud akin to packet loss. Viewing money as an information system, Musk highlighted the significance of addressing fundamental elements such as the speed of processing transactions and security to ensure a robust financial ecosystem.
Crypto Payments on X?
Further, the interview touched on Musk’s venture into the payments sector through Social Network X. Musk disclosed that the integration of payments into Social Network X, scheduled for mid-2024, faced delays primarily due to bureaucratic processes, acknowledging that the company was somewhat behind in submitting required documents for the necessary licenses.
Despite this setback, Musk expressed confidence, stating that he was not aware of any potential issues that could lead to the rejection of the application. While the crypto community has expressed a desire for Dogecoin and Bitcoin integration in the past, Musk clarified that the initial focus would be on fiat currencies, with a potential avenue for crypto integration in the long term.
Emphasizing his vision for X to become a “super app,” Musk outlined plans for paid verification and developing a comprehensive financial ecosystem. The licensing application for X was made public in January 2023, coinciding with the initiation of software development for the upcoming payment service. Rumours about Dogecoin integration gained traction after November 2022 updates, following Musk’s proposal in April.