Elon Musk on Crypto: Govt Should Take Hands Off Wheel
The bitcoin price is finally seeing green after being stuck in a rut for days. It’s no secret that Elon Musk has the potential to move markets. He has most recently made some comments in defense of the cryptocurrency industry on regulation, and investors appear to agree with him.
Musk on China
Musk during the CodeCon event in LA fielded some questions on crypto, starting with China. He addressed China’s not-so-subtle distaste for cryptocurrency, pointing to the country’s “significant electricity generation issues.”
Bitcoin mining relies on electricity to keep the machines running, and China’s power generation is heavily dependent on fossil fuels such as coal. Musk recently criticized bitcoin mining for its energy consumption, and the industry as a whole has been showcasing its commitment to renewable power ever since.
In China, higher-than-expected power demand is leading to outages in the southern part of the country, he explained, saying that bitcoin’s proof-of-mining model could potentially be a target.
“Cryptocurrency is fundamentally aimed at reducing the power of centralized government. And they don’t like that,” Musk suggested.
The Tesla chief also commented on his influence in the cryptocurrency market, saying if the price goes up he supposes it’s a good thing. The bitcoin price is up fractionally since Musk’s remarks surfaced.
Musk echoed what the cryptocurrency community has been saying ever since China threw down its blanket ban on crypto. He said, “It’s not possible for governments to destroy crypto.” Musk added, however, that governments can slow down the industry’s advancement. In his opinion, U.S. lawmakers should take their hands off the wheel when it comes to crypto and just “let it fly.”
Musk also noted that he does not think cryptocurrency is “the second coming of the Messiah.” What it can do is “‘help reduce the error and latency in the legacy money systems.”
Since China’s crypto ban, bitcoin market leaders have been saying that the U.S. should capitalize on the opportunity to embrace tech innovation. Regulators are still not there, however, with SEC Chairman Gary Gensler having recently referred to the crypto industry as the Wild West and stablecoins as poker chips.