Elon Musk may have some appreciation for the first and foremost cryptocurrency, but Bitcoin isn’t compatible with Tesla.
Musk has become (in)famous for his witty repartee on social media. In October of last year, he replied ’Wanna buy some Bitcoin?’ to a question regarding two-factor authentication for Tesla account holders. The post lit up Twitter — and cryptocurrency fans took the bait.
Wanna buy some Bitcoin?
— Elon Musk (@elonmusk) October 22, 2018
Cool Your Jets
In a recent interview, Musk made it clear that he values the brilliance of Bitcoin but does not see a future for the cryptocurrency with Tesla — at least, in the near future. He made it clear that the car manufacturer would not be a part of cryptocurrencies going forward, stating:
Bitcoin’s structure is brilliant but I don’t think it would be a good use of Tesla’s resources to get involved in crypto.
Furthermore, Musk was careful to comment that the energy consumed in creating Bitcoin (BTC) and processing transactions is too great. He said that the process of mining is too energy intensive at this point — a statement that seems to suggest that Bitcoin is not the final solution for digital payments, in his view.
Pros and Cons
While dismissing the possibility of Tesla’s involvement, Musk did express his belief that cryptocurrencies are here to stay. He suggested that the simplicity and elegance of a digital means of value transfer will be the way of the future, stating:
Paper money is going away and crypto is a much better value for a transfer of value than pieces of paper…
This position has been widely supported in recent months as the financial markets have begun to recognize the power of digital transfer systems. News of the new JPMorgan cryptocurrency (JPM) indicates that institutions are increasingly aware of the power of a payment method that is both decentralized and trustless. (Though, in the case of JPM, neither trait is likely applicable.)
Think Musk’s dismissal of Bitcoin for Tesla is a sign of a weakening adoption cycle or is he just concerned about diluting his company’s focus? Let us know what you think in the comments below!