Whenever the price of cryptocurrencies such as Bitcoin or Ethereum drops by a large margin, some people swear that the currency is doomed to fail. Recently, when China directly banned the sale of all cryptocurrency mining and trading, these ideas have been strengthened, which is a huge blow to decentralized currencies.However, despite these setbacks, Tesla CEO Elon Musk believes that cryptocurrencies will continue to exist.
More specifically, he believes that it is “impossible” to destroy cryptocurrencies from the beginning, although a country like China may be able to do so. That’s because as long as there is a flawed financial system in the world, there will be those who seek alternatives. The benefits of cryptocurrency are too great to be ignored in the future. They are a kind of checks and balances on the power of large government, and compared with the “traditional” monetary system, it is possible to reduce “errors and delays.”
Although Musk believes that the benefits and widespread adoption of cryptocurrencies make it difficult for the government to eliminate them, he admits that strong regulations and even bans can certainly slow its progress. Preventing people from legally acquiring and trading cryptocurrencies is the main means to curb their spread. However, since many cryptocurrencies provide traders with anonymity, it is almost impossible to completely eliminate them as long as the transactions are conducted outside of mainstream platforms such as Coinbase.
Musk seems to recognize this fact. When asked whether the U.S. government should intervene in the development of cryptocurrency through federal regulations, Musk just suggested that they “do nothing.”
Of course, Musk’s support for cryptocurrency is not new. The billionaire has long been a promoter of cryptocurrencies, especially Dogecoin and Bitcoin. In fact, Tesla announced earlier this year that as of February, it had purchased up to $1.5 billion worth of BTC.
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