Tesla CEO – Elon Musk – believed that digital assets could reduce error in the monetary database. In his opinion, cryptocurrencies are not ideal, but they are “fundamentally better” than any other financial product.
The entrepreneur once again claimed that Bitcoin’s main use case is a store of wealth, while Dogecoin is better suited for payments.
Nothing better than crypto so far
In a recent interview with Lex Fridman, one of the most influential people in the cryptocurrency space – Elon Musk – reiterated his support for the digital asset industry. According to him, the current financial system based on fiat currencies is far from perfect since governments can “dilute the money supply” with their impression of mass and cause inflation.
On the other hand, cryptocurrencies are a technological innovation that “takes us into the 21st century.” Unlike many people who characterize money as having power, Musk believes it should be viewed “through the lens of information theory.” He opined that the technology behind cryptocurrencies seems like the most effective form of transactions:
“Think of money as a database for the allocation of resources in time and space. In what form should this data system be most effective? “
However, the business magnate disagreed with the statement that bitcoin and the alternative coins are “ideal.” They are simply the best form of finance that has occurred until now:
“I’m not saying it’s the ideal system for a currency, but I think it’s actually fundamentally better than anything I’ve seen.”
‘I Am Not Satoshi’
Musk once again rejected the theory that he is the anonymous creator of Bitcoin. According to him, Nick Szabo – a computer scientist and a cryptographer known for his research in digital currencies – is most likely to be that person:
“I don’t know who created bitcoin for practical purposes, but the evolution of ideas is pretty clear before that, and it looks like Nick Szabo is probably more responsible than anyone for the evolution of these ideas.”
In any case, Tesla’s CEO opined that the creator’s name is not that important as the technology they invented. Not long ago, Dr. Saifedean Ammous opined somewhat similarly:
“You use the wheel everyday, but you don’t know who invented the wheel, and we use a lot of things everyday not because we trust the guy who invented them, but because they made their evidence, ”he said.
Bitcoin Vs. Dogecoin
Subsequently, the entrepreneur compared two of the most popular cryptocurrencies – Bitcoin (BTC) and Dogecoin (DOGE). Despite being created as a joke, the latter has some merits over the former, Musk claimed:
“It has a much higher transaction volume capacity than Bitcoin. The cost of a transaction (Dogecoin fees) is very low. If you want to make a Bitcoin transaction, the price for this transaction is very high, so you cannot use it efficiently for most things.
At the same time, the primary cryptocurrency is a store of wealth. People want to hold it as most likely its value will increase in the future, Musk concluded.