Elon & Jack's Bitcoin Interview - Main Takeaways
The highly anticipated event saw Elon Musk of Tesla, Jack Dorsey of Twitter and Cathie Wood of Ark Invest come together to speak about their support for Bitcoin, and the challenges the lie ahead.
In a highly anticipated virtual event held on July 21, Tesla & SpaceX CEO Elon Musk along with CEO of Twitter and Square Jack Dorsey, as well as Cathie Wood, CEO of Ark Invest discussed the role of Bitcoin in today’s world.
Let us have a look at the main takeaways discussed over the one hour long conversation hosted by theBWord.
A common thread among the the three high-profile participants was that all they agreed at large that Bitcoin will change the future of money, that there is a grave need for a monetary change on a global scale, and that Bitcoin will likely be incredibly adopted by more in the months and years to come.
In his argument of supporting Bitcoin, Elon Musk said the current monetary system is not secure and it take days for money to change hands, and add to that government's interference. Musk also spoke at lenghts about negative intersest rates for simply holding cash in European bank accounts, and that Bitcoin is an alternate system that can solve this problem. "Bitcoin has lot of potential and I am a supporter of Bitcoin and cryptocurrency in general," Musk underlined.
Musk also confirmed that SpaceX owns Bitcoin, a previously unknown fact, and that SpaceX, Tesla nor himself have any plans on selling any BTC from their holdings.
Bitcoin can replace current monetary system
Speaking on the importance of Bitcoin, Twitter CEO Jack Dorsey said the network and the community is the core for success of Bitcoin. It is always evolving. The current monetary system is predatory in nature. He argued that what really drove his thinking and passion around Bitcoin is that if the internet gets a chance to have its own native currency, it would have been Bitcoin for him since it is community driven and decentralized.
BTC can solve remittances problems
By giving example, Jack said, if I want to send money from one country to another country in remittance, I have to pay 8% to 30% on the top to send the money. If we focus on worldwide remittance problem, Bitcoin can solve many of the problems, without going through any intermediaries, corporations, or complicated systems that take outrages fees.
Bitcoin has a fundamental scarcity limit at the base layer since the BTC network is designed with just 21 million in total max supply. Bitcoin cannot itself scale to be a monetary system at base layer, argued Musk, but with second layer systems like lightning network scaling is not a problem.
Musk acknowledged that he owns Bitcoin, his largest holdings by far, as well as some Ethereum and Dogecoin. “If the price of Bitcoin goes down, I lose money. I would like Bitcoin to succeed,” Musk continued.
Clean energy for Bitcoin mining
On clean energy consumption for mining Bitcoin, a recent controversial topic that made Tesla pause their acceptance of Bitcoin for car purchases, Musk said that when Tesla started accepting Bitcoin, there was a massive run up in Bitcoin price and also massive amounts of energy was used to mine those coins. “Looking at this, we decided to suspend Bitcoin transactions for now. However, if mining operators decide to move towards renewable energy for mining, we will again start accepting it,” Musk stated, while consequently emphasising that since there is a positive trend in the use of renewable energy among Bitcoin miners, that it’s very likely that Tesla will once again start accepting BTC in payments.
Highlighting the importance of private keys on exchange, Elon said that if you hold crypto in an exchange and the exchange doesn't share the private keys, it means that you don't own your crypto. You have to own private keys. This point was made by Jack Dorsey as well, who emphasized the importance of using a self-custody wallet where you own your keys.
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