Tesla CEO Elon Musk believes cryptos will replace fiat

Tesla CEO Elon Musk believes cryptos will replace fiat

It seems like every day now comes with another bold prediction for cryptocurrencies from a rich entrepreneur. On February 19, Tesla CEO Elon Musk gave an interview on the ARK Invest podcast, and he sees cryptocurrency taking over in the future.

The tech visionary really feels that fiat is a thing of the past. He said, “Paper money is going away, and crypto is a far better way to transfer value than pieces of paper, that’s for sure.” This is very similar to the sentiment of crypto enthusiast Tim Draper, who recently said that fiat will only be used by criminals in the next five years.

The problem for crypto, as Musk sees it, is the energy cost of mining. “One of the downsides of crypto is that computationally it is quite energy intensive,” he said. “So there have to be some kind of constraints on the creation of crypto. But it’s very energy intensive to create the incremental Bitcoin at this point.”

Having learned his lesson from Thailand cave rescues not to spread his focus too thin, Musk is not interested in applying his companies to the evolution of cryptocurrencies. “It would not be a good use of Tesla resources to get involved in crypto. We’re just really trying to accelerate the advance of sustainable energy,” he said.

Previously, Musk has only admitted to owning 0.25 Bitcoin Core (BTC), which he was gifted from a friend. He does compliment BTC in the interview though, calling it quite brilliant. It’s not clear what element of BTC he’s impressed by, however.

From his crypto holdings, it’s clear that Musk doesn’t pay too much attention to the industry. Perhaps then, the Tesla CEO likes the original vision for Bitcoin set out by Satoshi, which has now been reborn in Bitcoin SV (BSV).

The only crypto that is focused on fulfilling the destiny originally set out for it, BSV is focused on massive on chain scaling and stable development. With that development plan, it’s the only crypto set up to replace fiat in the next five years, like Tim Draper and Musk suspect crypto will.

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