Tech mogul Elon Musk revealed a shift in his perspective on cryptocurrency during a conversation with Ark Invest CEO Cathie Wood. When asked about Bitcoin’s potential impact on the financial system, Musk stated that he doesn’t spend much time thinking about cryptocurrency, highlighting his evolving views.
Musk delved into his thoughts on the nature of money, describing it as essentially a database for resource allocation. While he admitted not giving much attention to cryptocurrency, he shared insights into his long-standing contemplation of money. According to Musk, fiat currency works well as a resource allocation database when it adheres to rules and experiences minimal government abuse.
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Musk doesn’t focus on cryptocurrency much
In Musk’s view, applying information theory to money problems is crucial. He likened the money system to an information system, emphasizing the need to minimize noise, latency, and packet loss. In this context, he discussed inflation as a factor adding noise to the system.
Despite his decreasing focus on cryptocurrency, Tesla, a company led by Musk, continues to hold digital assets. Tesla’s third-quarter results revealed a digital asset holding of $184 million as of September. Notably, Tesla stands as the third-largest holder of bitcoin among publicly traded companies, trailing behind MicroStrategy and Marathon Digital Holdings.
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Musk’s remarks provide a glimpse into his evolving stance on cryptocurrency, signaling a potential shift in his attention toward other aspects of technology and finance. While he acknowledges the relevance of cryptocurrencies, his recent statements suggest a more nuanced view of their role in the broader financial landscape.