Is Tesla’s Elon Musk Becoming A Bitcoin Fan? Showing His Understanding by Promoting its Latency Reduction in Transactions
Elon Musk has been sharing pro-Bitcoin, and Dogecoin sentiment for a while. Will the Tesla CEO become the world’s biggest institutional crypto investor?
Elon Musk, the second-richest man in the world and chief executive of Tesla Motors Inc., has been flirting with the possibility of making a significant investment in Bitcoin for a while now.
Last week, the billionaire shared some of his thoughts about money, displaying that he appears to understand Bitcoin and its potential finally.
Latency Reduction Wins
Musk had engaged in a lengthy Twitter conversation that began with famous writer Ben Mezrich (who wrote ‘Bitcoin Billionaires‘ about the Gemini owned Winklevoss Twins), who claimed that he would never turn down the option to get paid in Bitcoin if he was ever offered.
The billionaire answered in the affirmative, prompting a Bitcoin-friendly Twitter user reply about the limitations of gold and fiat currency when it comes to acting as currency. Replying to the user, Musk provided his view of money, saying:
Elon Musk CEO of Tesla, SpaceX & Dogecoin
“The thing we call money is just an information system for labor allocation. What actually matters is making goods & providing services. We should look at currencies from an information theory standpoint. Whichever has least error & latency will win.”
With his comments, Musk appeared to have been pumping Bitcoin. The leading cryptocurrency has proven to be much faster than conventional systems that facilitate money and asset transfers.
As he said, latency reduction should be the objective of payment processors, especially in cross-border transactions. However, with the SWIFT global banking system proving to be both slow and expensive, Bitcoin provides a viable alternative.
Crypto Investor Musk?
The second-richest man has been making more overtures to Bitcoin over the past few months, suggesting that he might make a big-money splash and join the growing ranks of institutional investors.
Following Bitcoin breaking its previous all-time high of $20,000, Musk tweeted a meme suggesting that the leading cryptocurrency was looking rather tempting.
Picking up on the meme was Michael Saylor, the chief executive of Virginia-based business intelligence firm MicroStrategy.
Saylor counseled that Musk could convert Tesla’s entire balance sheet into Bitcoin, explaining that the move could be a “$100 billion favor” to the automaker’s shareholders. The CEO added that he could always share his playbook with Musk.
MicroStrategy made a significant splash in the crypto space last year, investing close to $1 billion in Bitcoin across several transactions. Last month, it completed a $650 million capital raise after releasing convertible senior notes to investors. As the company claimed, it would use most o the funds raised to make Bitcoin purchases.
The Virginia-based firm is now looking to counsel other companies looking to make similar moves. This week, MicroStrategy announced a conference tagged “Bitcoin for Corporations,” open to any company looking to move to the Bitcoin standard and convert its reserves to the asset.
It’s improbable that Musk will make such a move, although he could put any of his estimated $181 billion wealth into the leading cryptocurrency.