In a recent conversation in the X space with Cathie Wood, CEO of Ark Invest, Elon Musk shared that he currently dedicates very little time to thinking about cryptocurrencies. When approached by Wood about Bitcoin’s potential impact on the financial system, Musk stated that he hardly spends any time considering these issues nowadays.
The entrepreneur expressed that, over time, he has deeply contemplated the concept of money and its nature, defining it as a database for resource allocation. In this regard, Musk stated that, in his opinion, fiat currency is “quite acceptable as a database for resource allocation,” as long as it operates based on rules and the government does not engage in significant abuse.
— Cathie Wood (@CathieDWood) December 21, 2023
Regarding the monetary system, Musk proposed an approach that applies information theory to money-related issues. He suggested thinking of money as an information system, emphasizing the importance of minimizing noise, latency, and data loss in such a system. In this context, he noted that inflation could be considered as introducing noise to the system.
Tesla, Elon Musk’s Company, Keeps a Close Eye on MicroStrategy in Bitcoin Holdings
It is relevant to mention that Musk’s statements come at a time when Tesla, one of Musk’s many companies, appears to maintain digital assets on its balance sheet. The company’s third-quarter results revealed that the electric car manufacturer held $184 million in digital assets at the end of September.
Moreover, Tesla ranks third in terms of Bitcoin holdings among publicly traded companies, following MicroStrategy and Marathon Digital Holdings, according to data from bitcointreasury.net. Despite its involvement in the cryptocurrency market, Musk indicated that he spends little time reflecting on these assets currently.
Despite expressing a certain current disinterest in the sector, Musk is still betting on cryptocurrencies through his companies. In relation to his views on money, the fact that he is one of the wealthiest and most successful people on the planet gives him significant authority to provide insights on the subject.