Crypto

Elon Musk: Cryptos Are Not Perfect but They Are Better Than Others

Elon Musk - Cryptos Are Not Perfect but They Are Better Than Others

Cryptocurrencies are not perfect, but they are better than anything else we’ve seen, according to Elon Musk.

Elon Musk believes that digital assets are the best form of currency that has ever existed, although they are not “perfect.”

Elon Musk, the CEO of Tesla, believes that digital assets could help to eliminate money database errors. Cryptocurrencies aren’t perfect, but they’re “fundamentally superior” to any other financial instrument, Musk believes.

According to the entrepreneur, BTC’s primary use case is as a store of value, but Dogecoin is better suited for payments.

So far, there hasn’t been anything better than cryptocurrency

Elon Musk, one of the most powerful people in the cryptocurrency world, recently reiterated his backing for the digital asset business in an interview with Lex Fridman. According to him, the current financial system based on fiat currencies is far from perfect because governments can utilize mass printing to “dilute the money supply” and hence generate inflation.

Cryptocurrencies, on the other hand, are a technological advancement that “brings us into the twenty-first century.” Unlike many others who think of money as a source of power, Musk believes it should be viewed “through the lens of information theory.” He believes that the technology that underpins cryptocurrency is the most efficient mode of transaction:

“Consider money as a database for allocating resources over time and space. What is the most effective format for that data system?”

The businessman, on the other hand, disagreed with the assertion that BTC and other alternative coinage are “perfect.” They are simply the most effective type of financing that has ever existed:

“I’m not claiming that it’s the ideal money system, but I believe it’s fundamentally superior to anything else I’ve seen.”

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‘I Am Not Satoshi,’ says the narrator

Musk has debunked the claim that he is Bitcoin’s mysterious founder once more. Nick Szabo, a computer scientist, and cryptographer is known for his work on digital currencies is most likely to be that person, according to him:

“I’m not sure who invented Bitcoin (BTC) for practical purposes, but the history of concepts is very apparent before that, and Nick Szabo appears to be more responsible than anyone else for the advancement of those ideas.”

In any case, Tesla’s CEO believes that the name of the inventor is less essential than the technology they created. Dr. Saifedean Ammous recently expressed similar sentiments:

“You use the wheel every day, but you have no idea who invented it,” he remarked, adding that “we use a lot of things every day not because we trust the individual who invented them, but because they have an established track record.”

Dogecoin vs. Bitcoin

The business magnate then analyzed two of the most popular cryptocurrencies, Bitcoin (BTC) and Dogecoin (DOGE) (DOGE). Despite being made as a joke, Musk claims that the latter has several advantages over the former:

“It is capable of substantially higher transaction volumes than Bitcoin.” The transaction fee (the Dogecoin fee) is quite minimal. Because the cost of a Bitcoin transaction is so expensive, you wouldn’t be able to use it for most things.”

At the same time, the main cryptocurrency serves as a wealth store. People want to hold it because its value is anticipated to rise in the future, according to Musk.

The Author

Samuel Adeshina

Samuel is a financial reporter whose interests include blockchain, market, business, insurance, and Crypto to provide relevant information to all interested.