According to Elon Musk, cryptocurrency can fix the ‘error in money.’ Elon Musk, the CEO of Tesla, has claimed that the present monetary system includes numerous mistakes; the aim of cryptocurrencies is to try to reduce them.
During a conversation with the Lex Fridman podcast, Musk said government intervention in the money supply by means of excessive printing distorts currency value.
Elon Musk, a big advocate for cryptocurrency, criticized the centralization of money, suggesting that the government would abuse its power to control the money supply. In this context, he implied that digital currencies’ decentralized nature might provide a solution.
“I think the cryptocurrency thing is an interesting approach to reducing the error in the database that is called money that is contributed by governments diluting the money supply<…>The government effectively has editing privileges on the money database and they use those editing privileges to make more money whenever they want. This increases the error in the database that is money.”
Elon Musk: Bitcoin offers a solution
Furthermore, Musk feels that the present money systems are based on outdated technology and need to be replaced with new cryptocurrencies.
Elon Musk said that the advent of assets like Bitcoin (BTC) offers a solution despite their faults, such as long transaction time.
However, Musk believes that such difficulties make Bitcoin a great store of wealth for investors while acknowledging ongoing efforts to improve the system, such as the lightning network.