Tesla CEO Elon Musk argues that crypto assets can reduce errors in the currency system. In his view, crypto assets are not suitable, but they are "fundamentally better" than any other financial product.
The entrepreneur once again claims that the main use case of Bitcoin is to store wealth, while Dogecoin is more suitable for making payments.
In a recent interview with Lex Fridman, one of the most influential individuals in the crypto asset space, Elon Musk once again reiterated his support for the crypto asset industry. According to him, the current financial system based on fiat currency is far from perfect as the government can “dilute the money supply” with mass printing and can indirectly cause inflation.
Instead, crypto assets are technological innovations that "take us into the 21st century." Unlike most people who describe money as a form of power. Musk while arguing it should be seen "through the lens of information theory."
He argues that the technology behind crypto assets has the potential to be the most effective transaction. However, he disagrees with the statement that bitcoin and crypto assets are "ideal" alternatives. For him it is just one of the best forms of finance that has happened so far:
"I'm not saying that it's an ideal system for a currency, but I think basically it's better than the others." - Musk
At the same time, Musk rejects the theory that He is the designer/creator of Bitcoin. According to him, most likely Nick Szabo is the man. Nick Szabo is a computer scientist and cryptographer known for his research in crypto assets. Personally, for him the name of the creator is not as important as the technology they created. Dr. Saifedean Ammous also thinks the same:
“You use wheels every day, but you don’t know who invented the wheel, and we use it every day not because we trust the person who created it but because it has a proven track record,” he said.
Following that, Musk also compared the two most popular crypto assets, namely Bitcoin (BTC) and Dogecoin (DOGE). Although it was created as a joke, it has some advantages over BTC.
Musk claims, “It has a higher transaction size capability than Bitcoin. The cost to make a transaction (Dogecoin) is very low. If you want to do a Bitcoin transaction, the price to do that transaction is very high, so you can't use it effectively for most things. ”
At the same time, the main crypto asset is savings for wealth. People want to hold on to it because most likely its value will increase in the future, Musk concluded.
