While China has definitively cracked down on crypto, Tesla CEOs have stated that governments cannot destroy crypto. He did, however, warn that governments could stymie the growth of Bitcoin and other digital currencies.
CNBC quoted Musk as saying during a recent tech event in California. “It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement,”
Musk responded to the question of whether the US government should regulate the cryptocurrency market by saying, “Do nothing.”
In response to Beijing’s crackdown on cryptocurrency; Musk suggested that the action may have been motivated by the country’s “significant electricity generation issues.” suggest by Musk.
“Part of it may actually be due to electricity shortages in many parts of China” ; the report quoted Musk as saying. “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 added.
The decentralised nature of cryptocurrencies may pose a higher-level challenge to the Chinese government.
“I suppose cryptocurrency is fundamentally aimed at reducing the power of a centralised government,” Musk said.
Tesla purchased $1.5 billion in Bitcoin earlier this year, which increased in value to $2.5 billion during the second quarter. However, Bitcoin and other cryptocurrencies have plummeted as a result of a series of missteps.
Musk has been heavily involved with cryptocurrencies; as evidenced by his Twitter feed, which is chock-full of posts about digital currencies. He has, however, acknowledged that it cannot solve all problems.