Elon Musk Reviews Bitcoin as the Mode of Payment on Mars

Elon Musk has considered the idea of using Bitcoin as currency on Mars. In a Space on X (formerly Twitter) titled “ARK 21 Shares Bitcoin ETF (ARKB) Approved,” ARK Invest CEO Cathie Wood conversed with Musk and he initially shot down the idea of using Bitcoin as the currency on Mars as the transaction speed is slow.

He stated, “It would make sense to use some kind of cryptocurrency on Mars; you couldn’t use Bitcoin because the reconciliation is too long.” 

Although the transaction speed of Bitcoin is slow, Musk is still considering it as a potential mode of transaction. This is all in line with his ongoing vision of building a colony on Mars by 2050, that humans must evolve into a multi-planetary species to survive.

After verbally brainstorming, Musk concluded that Earth is 6 light minutes away from the Sun while Mars is approximately 12 light minutes away, though it will still face obstacles.

He added, “Perhaps you can use Bitcoin to some degree, but it would be difficult to use it a lot on Mars.” He emphasizes the potential need for a localized network on the planet.

Elon Musk’s View on How the Slow Transaction Speed of Bitcoin Could Be Tackled

Matt Corallo, Bitcoin core developer, and Musk agreed that Bitcoin’s slow transaction speed could be tackled through localized Lightning Network. At present, it takes nearly an hour to secure transactions because its blockchain assembles them into 10-minute blocks. It needs confirmation of six blocks before the transaction is finalized.

On the other hand, Adam Back, CEO of Blockstream, is confident about the idea with or without the local lightning network in Bitcoin’s current form. He replied to the X space thread, stating, “12-22 light minutes is no problem with 10-minute blocks.”

As per Glassnodes, the cost of sending value across the Lightning Network is notably cheaper to use than other legacy payments. In April 2023, the data from Glassnodes highlights that the cost of sending value across the lightning network is 0.0029% which is 1000 times cheaper than MasterCard or Visa payment processors.

There is a lot of speculation about whether Musk will implement cryptocurrency on X as he plans to transform it into an “everything app.”

On August 5, 2023, Musk replied to users on X regarding why he never launched a crypto token on X. He clarified that has no such intentions to launch proprietary crypto tokens on the platform.

Summary

Elon Musk has reconsidered the idea of using Bitcoin as the payment method on Mars. The slow transaction speed of Bitcoin has raised skepticism about its usage on the distant planet. Initially, Musk expressed resistance regarding the usage of Bitcoin. However, after some contemplation, he has changed his stance. 

The SpaceX founder highlights the need for a localized network on Mars to facilitate efficient transfers. Thus, this shows that Mars settlements will likely include payments in Bitcoin.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.