Tesla CEO spoke again in favor of decentralized currencies, forecasting that cryptocurrencies will be able to replace traditional paper money in the furutre.

Crypto is more convenient than fiat

Elon Musk participated in the podcast of ARK Invest, during which he was asked about his attitude to cryptocurrencies.

“I mean I think the bitcoin structure was quite brilliant. It seems like there’s some merit to Ethereum as well, and maybe some of the others. But, you know, I’m not sure if it would be a good use of Tesla resources to get into crypto,” said Musk, adding that one of the main drawbacks of cryptocurrency is the energy-consuming nature of its mining.

“I think actually one of the downsides of crypto is that computationally, is that it’s quite energy intensive. So there have to be some kind of constraints on the creation of crypto. So, but it’s very energy intensive to create an incremental bitcoin at this point.”

At the same time, Musk sees cryptocurrency as a more convenient financial instrument than traditional fiat money.

“It [crypto] bypasses currency controls. … Paper money is going away. And crypto is a far better way to transfer values than a piece of paper, that’s for sure.”

Musk, Twitter and Scam

The US entrepreneur recollected the time when he got his account suspended by the Twitter algorithms for jokingly writing a post about selling bitcoins.

“Bitcoin and Ethereum scammers were so rampant on Twitter that I thought I’d just join in,” he said on the podcast.

In late October, the post “Want to buy some Bitcoin?” appeared in Musk's Twitter. This message caused a rush among crypto enthusiasts who started to speculate, what was the reason for such a tweet and whether it indicated that Tesla planned partnerships with some cryptocurrency start-up.

In 2018, Twitter reported that it had discovered a group of fake social media accounts in Elon’s name which promised to hand out free Ethereum. Then Musk tweeted that "I want ETH even if it is a scam."