Tesla CEO Elon Musk on Tuesday stated the U.S. government should avoid making an attempt to control the crypto market.
“It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement,” Musk stated on the Code Conference in Beverly Hills, California.
Musk was responding on stage to a query from New York Times columnist Kara Swisher. She requested whether or not the U.S. government should be concerned in regulating the crypto house.
“I would say, ‘Do nothing,'” he stated.
Tesla stated early this yr that it had bought $1.5 billion price of bitcoin. The worth of these holdings swelled to about $2.5 billion within the second quarter as bitcoin costs surged. Bitcoin has since dropped, together with different cryptocurrencies.
Musk, who has often touted his assist for varied digital cash on Twitter, is bullish on the function of crypto in probably decreasing the “error and latency” within the legacy cash techniques. But he acknowledged that crypto does not have all of the solutions to society’s ills.
“I wouldn’t say that I’m a massive cryptocurrency expert,” stated Musk. “I think there’s some value in cryptocurrency, but I wouldn’t say it’s the second coming of the Messiah.”
Musk on China’s crypto crackdown
Musk additionally addressed China’s function in crypto mining and regulation.
Musk stated the heavy hand probably has to do with the nation’s “significant electricity generation issues.”
“Part of it may actually be due to electricity shortages in many parts of China,” stated Musk. “A lot of South China right now is having random power outages, because the power demand is higher than expected.”
“Crypto mining might be playing a role in that,” he stated.
At a better stage, the decentralized nature of cryptocurrencies could current a problem for the Chinese government.
“I suppose cryptocurrency is fundamentally aimed at reducing the power of a centralized government,” Musk stated. “They don’t like that.”
WATCH: Elon Musk says bitcoin is wanting much more environmentally pleasant
