“Bitcoin Is Not Great for a Transaction” Says Elon Musk. But Why? –

• Elon Musk sees Bitcoin as a high-volume transaction system.
• Musk challenges money’s intrinsic power and emphasizes labor allocation.

A recent X space hosted by Cathie Wood, the CEO of ARK Invest had technology luminary Elon Musk, the CEO of Tesla and SpaceX as one of the speakers. Musk, known for his outspokenness on various topics, provided insights into his perspective on the leading cryptocurrency, Bitcoin during the discussion on the approval of the ARK 21Shares Bitcoin ETF (ARKB).

Elon described Bitcoin as “not great for a transaction” but highlighted its significance as a high-volume transaction system. He drew parallels between cryptocurrency and traditional stores of value like gold, emphasizing its role as a form of internet scarcity. Interestingly, Musk mentioned that Bitcoin was initially conceptualized as “Bitgold” in its evolutionary journey.

During the discussion, Musk expressed openness to the idea of using Bitcoin, despite admitting that he thinks about it “very little” compared to other topics. He positioned Bitcoin as part of the infrastructure for the “everything app,” suggesting a broader application beyond just financial transactions. He also touched upon the Lightning Network, a layer on top of Bitcoin designed to enable faster and cheaper transactions.

Elon Musk’s Unconventional Take

Musk delved deeper into his thoughts on money, asserting that it is essentially an information system for labor allocation. He challenged the common perception that money holds intrinsic power, emphasizing that its utility lies in facilitating the exchange of labor and resources within a complex society. Musk’s musings extended to the practicalities of monetary systems, illustrating his broader understanding of economic dynamics.

As Musk shared his views, he encouraged the breaking of news on platform X, underscoring his vision of expanding the use of Bitcoin and making it an integral part of a global information system.

While Musk’s thoughts on Bitcoin may not provide a comprehensive roadmap for its future, they offer a glimpse into the mind of a tech visionary who continues to challenge conventional wisdom. As more companies and individuals contemplate the role of cryptocurrencies, Musk’s contributions to the dialogue will undoubtedly spark further debate on the evolving nature of money and its place in our interconnected world.