Elon Musk, the CEO of Tesla said in a recent interview, the US government should not regulate cryptocurrencies.
At the Code conference in Beverly Hills, California, Musk did answer questions regarding cryptocurrencies and the latest Chinese crackdowns.
“It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement,” said musk.
When asked about whether the US government should interfere utilizing regulation he replied:” I would say, Do nothing”.
Elon Musk is perhaps one of the loudest voices when it comes to cryptocurrencies. We all know about the controversial $1.5 billion investment in Bitcoin. An investment that is now north of $2.5 billion worth. In that regard, it is only natural for him to be a maximalist.
“I wouldn’t say that I’m a massive cryptocurrency expert,” Musk said. “I think there’s some value in cryptocurrency, but I say it’s the wouldn’t second coming of the Messiah.”
As an outspoken advocate of Bitcoin and Dogecoin, musk has had questionable behavior on Twitter. Encouraging massive pump events for Dogecoin and Shiba-inu, when both are considered as shitcoins. On the other hand, creating a FUD by raising environmental concerns over BTC mining was at the opposite end of the spectrum.
One day he loves Bitcoin; the other day he hates it.
Elon Musk on China Crackdowns
Last week, the People’s Bank of China declared all cryptocurrency transactions illegal. This was probably the largest ban possible coming from the Chinese government.
When asked about the crackdowns, Musk called the “significant electricity generation problem” as the primary reason for it.
“Part of it may actually be due to electricity shortages in many parts of China,” Musk stated. “A lot of South China right now is having random power outages, because the power demand is higher than expected.”
This could barely be a plausible reason for the ban on crypto since nearly all Chinese provinces have declared mining illegal since summer of 2021.
Furthermore, Elon Musk said that the Chinese government “doesn’t like” the decentralized nature of cryptocurrencies. It is perhaps a great concern for the Chinese government to have their totalitarian authority challenged by crypto. We have discussed the political impact of cryptocurrencies in China before.
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