Elon Musk voices his true thoughts on cryptocurrencies

The CEO of Tesla and SpaceX, Elon Musk, has been dropping hints of his interest in cryptocurrencies on his Twitter account for months, now. Of course, he never openly stated what he thought about crypto, nor that he is an investor. However, from time to time, he would mention them in a cryptic way that ended up sparking endless discussions and speculation.

However, after his recent appearance at the Third Row Tesla Podcast, the crypto community finally got its answer, and Musk’s opinion of crypto became public knowledge.

During the podcast, Musk was asked about his stance on cryptocurrencies, and he responded by saying that he is “neither here nor there on Bitcoin.”

Elon Musk’s concerns regarding the role of crypto

He revealed that he did think that Satoshi Nakamoto’s whitepaper — a document outlining the idea of a digital currency run on decentralized blockchain technology — is “pretty clever.” However, he also noted that he has concerns regarding Bitcoin’s potential for making illegal transactions.

Musk elaborated by saying that not all transactions are within the bounds of the law, pointing out that different countries have different laws. These transactions are normally made with cash. However, he also noted that, in order for illegal transactions to take place, the cash needs to be used for legal transactions, as well. In other words, Musk sees the necessity for an illegal-to-legal bridge, and he thinks that cryptos would be that bridge.

He also pointed out that cash is becoming harder and harder to use. This is especially true in developed countries, which are slowly but surely abandoning the cash system. He then noted that cryptocurrencies could be a good replacement for cash, but he doesn’t believe that they would ever become the primary database for transactions.

Finally, he noted that any alternative to cash would need to have used for illegal and legal purposes alike, otherwise, it just would not count. Still, he claims that he is not being judgmental regarding cryptos, despite their potential to be used for illegal purposes. In other words, he is not opposing them, even though he is not fully endorsing them, either.