During an interview with at the invite-only Code Conference in Beverly Hills, Elon Musk said the government should steer clear of trying to regulate Bitcoin and cryptocurrency.
In an interview with Kara Swisher Tuesday at the annual invite-only Code Conference in Beverly Hills, Elon Musk said the government should steer clear of trying to regulate Bitcoin and cryptocurrency.
“It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement,” Musk said during his red-chair interview.
When asked whether the U.S. government should be involved in Bitcoin and crypto regulation, Musk responded, “I would say, ‘Do nothing.”
On the challenge that the decentralization of Bitcoin presents to state powers, Musk said, “I suppose cryptocurrency is fundamentally aimed at reducing the power of a centralized government,” he continued, “They don’t like that.”
“I wouldn’t say that I’m a massive cryptocurrency expert,” Musk clarified. “I think there’s some value in cryptocurrency, but I wouldn’t say it’s the second coming of the Messiah.”
In regards to China’s renewed ban on Bitcoin, Musk said the central bank’s crack down likely has to do with “significant electricity generation issues.”
“Part of it may actually be due to electricity shortages in many parts of China,” he said. “A lot of South China right now is having random power outages, because the power demand is higher than expected.”
While Elon appears to have only a rudimentary understanding of Bitcoin, he does enjoy a massive following on Twitter, and his Twitter antics have been correlated with temporary market movements.
Musk has been generally bullish on Bitcoin and crypto in the past year, although his morally dubious role in pumping altcoins, which rise with temporary exuberance and then tend to crash, has lost him the general support of many Bitcoiners.
Earlier this year Tesla purchased $1.5 billion worth of Bitcoin. The company has also gone back and forth between accepting and halting Bitcoin for Tesla payments this past year. They have even sold some of their Bitcoin in an apparent test of market liquidity. It was revealed during The ₿ Word event that Elon’s aerospace company SpaceX also holds Bitcoin.
Source: Bitcoin magazine