Elon Musk: Bitcoin Pros And Cons; Cryptocurrency Structure Is Brillaint, Energy Intensive
Elon Musk is known to manufacture and head a vast amount of tech companies. Once again, the CEO stir the headlines as he talks about cryptocurrency. The real-life iron man however made it clear that Tesla will not be entering that digital currency. The tech genius talks about it in a podcast.
Elon Musk made it clear that his electric car company, Tesla is not going into cryptocurrencies despite tweeting about it. The company's CEO noted that the world's first ever, and the largest digital currency is interesting, and also could be a beneficial way to transfer money. However, he said that it is not for Tesla, in a podcast that was released last Tuesday.
As follows, Elon Musk told Cathie Wood of ARK, which also a share in the electric car company, "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." Thus, the CEO highlighted that the ability of Bitcoin to bypass the currency controls and replace the paper versions. However, he also pointed out the flaws, which includes the energy that is involved with mining.
Back in 2018, Elon Musk tweeted about Bitcoin. It triggered speculation by Bitcoin fans on social media that the tweet is more than just a joke. The Tesla founder settled Wood that the comment he released was tongue in cheek. He also added that his Twitter account got temporarily been suspended because "there's some automatic rule about selling Bitcoin." Thus, Musk admits that he was just joking, according to RT.
Elon Musk is the latest tech figure to speak out against a cryptocurrency scam currently engulfing Twitter. He tweeted: "I want to know who is running the #Etherium scambots! Mad skillz." #BTC #blockvhain #fintech #coins #bitcoincash #cryptonews https://t.co/S3UKvXM0sI — Coincurve (@coincurve) August 3, 2018
Furthermore, for people to create a new Bitcoin, they will need a high-powered computer for them to solve a complex math problem. The winner will then be rewarded with a small amount of Bitcoin. This cryptocurrency hit the mainstream as investors began to swarm and by the end of 2017, it almost hit to $20,000. However, the price has dropped more than 80 percent and was trading near $3,900 last Tuesday, according to CNBC.
In line, Elon Musk also mentioned that paper money is going away and the cryptocurrency is a much better value for transmission of value compared to pieces of paper. But he also mentions the pros and cons. He said that creating a Bitcoin is very energy intensive at this point.