In an interview with Cara Switzer on Tuesday at the annual Invitational Code Conference in Beverly Hills, California, Elon Musk argued that world governments should refrain from trying to control bitcoin and cryptocurrency.
“I think it’s not possible to destroy crypto, but it’s possible for the government to slow its progress,” Musk said during his red chair interview.
Asked if the U.S. government should be involved in bitcoin and crypto regulation, Musk replied, “I would say, do nothing.”
The comments come at a time when the public has begun to evaluate the anti-fragility of Bitcoin, publicly wondering if the system is likely to shut down if it is too successful. Such a statement was recently made by billionaire Ray Dalio, who argued that he believes governments can stop bitcoin.
Musk, it seems, understands the situation more deeply.
The decentralization of bitcoin presents a challenge to the states, Musk said, adding that “I think cryptocurrency is primarily aimed at reducing the power of a centralized government,” adding that “they don’t like it.”
Nevertheless, Musk added: “I would not say that I am a great cryptocurrency expert. I think cryptocurrency has some value, but I would not say that it is the second coming of Christ.”
Musk owns Bitcoin, and his companies Tesla and SpaceX now hold cryptocurrency as a reserve asset. However, his comments show that he still does not understand the relationship of the network with energy production and why it is beneficial for his core industry.
Regarding China’s renewed efforts to ban bitcoin, Musk said the central bank’s crackdown was probably related to “significant power generation problems”.
“Some of this may actually be due to the power crisis in many parts of China,” he said. “Currently, there is a lot of random power outages in southern China, because the demand for electricity is higher than expected.”
Tesla bought য়ে 1.5 billion worth of bitcoin earlier this year. Citing the use of network power, the company has also lagged behind in accepting and closing bitcoins for Tesla payments this year. Since then, Musk has been reluctant to start accepting payments again, even as available data has undermined his company’s decision.