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Elon Musk Agrees Bitcoin Fixes ‘Inflationary Insanity’ in Fresh Debate on Future of Crypto

DATE POSTED:January 16, 2021

Tesla CEO Elon Musk is acknowledging a claim that Bitcoin can potentially be the cure for the loose monetary policies adopted by the world’s central banks.

Responding to a tweet, Musk disputes the claim that money is just a tool to move value across space and time.

“The thing we call money is just an information system for labor allocation. What actually matters is making goods and providing services. We should look at currencies from an information theory standpoint. Whichever has least error & latency will win.”

A pseudonymous user named Cerberus chimes in and explains why Bitcoin does not have to fulfill the functions of currencies as money.

“Bitcoin. Least-error; longest/toughest/oldest blockchain, most secure due to phenomenally gigantic hashrate.

Granted; it has latency and transaction costs. But if used as a store of value and transmission of large values, it is massively efficient. Currencies already work as currencies; Bitcoin need not replace them. Rather, BTC is a patch to fix reserve banks’ inflationary insanity.”

The world’s second-richest person appears to agree with Cerberus’ argument.

“Good point.”

Musk’s recent exchange on Twitter comes after the tech magnate replied to a tweet by Bitcoin Billionaires author Ben Mezrich, saying he will never again turn down an opportunity to be paid in BTC.

Me neither

— Elon Musk (@elonmusk) January 9, 2021

Over the last two months, Musk has displayed ambivalence towards Bitcoin.

In December, the tech billionaire tweeted a suggestive meme, implying that it is difficult to remain productive while ignoring the leading cryptocurrency.

On the same day, Musk equated the flagship crypto asset to traditional currencies.

“Bitcoin is almost as BS as fiat money.”

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