Elon Musk Shifting Focus Away From Blockchain

December 27, 2023 2:26 pm Comments

Elon Musk has once again shifted his focus when it comes to cryptocurrencies and blockchain money.

The billionaire and industrialist recently told Cathie Wood of Ark Invest “I don’t spend much time thinking about cryptocurrencies, almost no one does.” This is in stark contrast to earlier comments the serial entrepreneur has made.

Musk, affectionately known as ‘the Dogefather’, says that he wants to focus on the broader concept of money—ignoring the censorship-resistant and libertarian principles inherent in the Bitcoin network.

Blockchain money is not simply valuable because of changes to finality or transaction processing time. People flock to Bitcoin because the fiat monetary system is fraudulent and failing worldwide.

In the case of Bitcoin at least, the implications go far beyond convenience, though other cryptocurrencies are centralized and do not operate the same way as Bitcoin.

Musk, who is turning X into a full-fledged payments platform, is reportedly focused on that at the moment. Here’s more on the story:

Cryptonomist pointed out:

All of this seems really strange considering that just 2 years ago the CEO of Tesla had driven the last bull market of Bitcoin by starting to accept (and then reversing) the currency as a means of exchange for purchasing their electric cars.

His philosophy is that if a government does not abuse the privileges of printing new currency, fiat currencies serve the purpose for which they were created, namely as a medium of exchange for the trade of goods and services.

Kelsey Ayala summed up Musk’s current purported point of view:

“Elon Musk recently said he does not care much about cryptocurrencies, especially Bitcoin. In a conversation with Ark Invest CEO Cathie Wood, he said that he is more focused on the nature of money and sees fiat money as a good basis for allocating resources, as long as it has rules and should not be used.

Elon Musk applies information theory to the monetary system and emphasizes that issuance creates noise in the system. Those who see this in the context of Tesla still holding digital assets on its balance sheet and according to bitcoin treasury, Tesla is the third largest publicly announced holder of Bitcoin.”

One user went more in-depth and shared his perspective as well:

“Noise and error were broken down into the following components as negative contributors: inflation / deflation, fees, and fraud. Latency is defined by how quickly transactions are settled.

In the entire crypto space let’s see which coin objectively excels at each criteria.

1) Inflation / deflation contribute to error and should be as close to zero as possible. Which crypto currently has zero inflation? Nano. Note that a known inflation schedule does not mean that it has zero inflation.

A known inflation schedule is still a contributor to noise or error. A known contributor to noise or error is still noise or error. The most optimal zero inflation monetary asset is the one that has zero inflation now. That would be Nano.

2) Fees contribute to noise and error and should be as close to zero as possible. Which crypto has zero fees? Again, Nano. Any other crypto with “very small” fees is not zero and is sub-optimal.

3) Latency and fraud I am tying together since they are typically linked in crypto. Fraudulent transactions would be otherwise known as double spends or reversibility. Latency is tied to this because traditional blockchain technologies have probabilistic finality which approaches 100% irreversibility at the expense of time or latency.

Which crypto reaches an effective 100% irreversibility with the lowest latency? Again it’s Nano! Nano’s transactions have deterministic finality and are 100% irreversible after 500ms. Maybe you think these criteria are not what defines the optimal crypto. Personally, I agree with Elon on these.

Maybe you disagree with my “objective” analysis of the coin that won each category. To those I say: ask Grok, the truthful AI. Grok’s answer will be grounded in truth without bias or greed.”

Coin Telegraph reports:

Elon Musk’s “everything app” X (formerly Twitter) is expected to launch in-app payment services on its social media platform around mid-2024, though crypto integration now seems remote.

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