Elon Musk stated that the government should not try to regulate cryptocurrency and Bitcoin during an interview at the Code Conference in Beverly Hills.
Elon Musk made the argument that global governments should avoid trying to regulate Bitcoin and other cryptocurrency in an interview with Kara Swisher, Tuesday, at the annual invite only Code Conference in Beverly Hills.
Musk stated that it was impossible to destroy crypto but that governments can slow down its progress.
Musk replied, “Do nothing” when asked if the U.S. government should get involved in Bitcoin regulation.
These comments are made at a time where public figures are beginning a review of Bitcoin’s anti-fragility and asking openly if the system could be shut down if it becomes too popular. These statements were made by billionaire Ray Dalio who claimed he believes that governments can shut down Bitcoin.
Musk seems to have a deeper understanding of the situation.
Musk stated that the challenges presented by Bitcoin decentralization to states are a challenge. He said, “I suppose cryptocurrency is fundamentally designed at reducing power of a central government,” and added, “They don’t like it.”
Musk defended his statements saying, “I wouldn’t claim that I’m an enormous cryptocurrency expert.” Although I believe there is some value in cryptocurrency I would not say that it is the second coming of Jesus Christ.
Musk is the owner of Bitcoin. His companies Tesla, SpaceX all hold the cryptocurrency as a reserve. His remarks reveal that he doesn’t fully understand the relationship between cryptocurrency and energy production, nor why it is beneficial to his core industry.
Musk stated that China’s renewed attempts to ban Bitcoin was likely due to’significant electricity generation problems’.
He said that electricity shortages in China may be partly responsible for some of the problems. “A lot of South China is experiencing random power outages right now, because the demand for power is higher than anticipated.”
In April, Tesla bought $1.5 billion of Bitcoin. Tesla has been arguing about whether to accept or stop Bitcoin payments for Tesla payments in the past year. This is due to Tesla’s increased energy consumption. Musk seems unwilling to accept payments again, despite the fact that there is no data to support his company’s decision.