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Elon Musk: Cryptocurrency fixes the ‘error in money’

Elon Musk: Cryptocurrency fixes the 'error in money'

Tesla (NASDAQ: TSLA) CEO Elon Musk has suggested that historical errors characterize the current money system; an aspect cryptocurrencies are attempting to reduce. 

While appearing on the Lex Fridman podcast, Musk stated that errors result from the government’s ability to interfere with the money supply through excessive printing, which dilutes the currency’s value. 

Musk, a crypto proponent, faulted the centralization aspect of money, noting that the government is likely to abuse its rights to determine the money supply. In this line, he insinuated that the decentralized nature of digital currencies might offer 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,” said Musk.

Furthermore, Musk believes that the current money systems run on old technology that needs an overhaul and cryptocurrencies to offer the perfect alternative to fixing the system. 

At the same time, the SpaceX founder also noted that the emergence of assets like Bitcoin (BTC) offers a solution despite shortcomings like long transaction time. 

However, according to Musk, such challenges also make Bitcoin a perfect store of wealth for holders while acknowledging ongoing initiatives to improve the system, like the lightning network. 

Musk on Satoshi Nakamoto’s identity 

Furthermore, during the session, Musk delved into the controversy surrounding the real identity of Satoshi Nakamoto, the anonymous creator of Bitcoin. 

Musk stated that he believes computer scientist Nick Szabo might be Bitcoin’s creator because he meets all the attributes of Nakamoto. At the same time, Musk also dismissed previous rumors that he might be the individual behind Bitcoin. 

Musk’s singling out of Szabo stems from the computer scientist’s 1998 proposal on creating a digital currency named “BitGold.” 

Overall, Satoshi’s identity has emerged as a hot topic in recent months, with Australian computer scientist Craig Wright claiming he is the creator of Bitcoin, even using the court system in an attempt to prove his identity. 

Watch the video: Elon Musk: Cryptocurrency Fixes Money | Lex Fridman Podcast Clips

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