Elon Musk: Crypto Is a Replacement for Cash but Not the Primary Database

American entrepreneur and inventor Elon Musk shared his thoughts on Bitcoin and cryptocurrencies during the recent Third Row Tesla podcast. Musk admitted that he does not attribute himself to either the number of supporters or the opponents of cryptocurrency while saying: “I thought [the Bitcoin whitepaper] was pretty clever.”

According to Musk, cryptocurrency advocates should be aware that they are often used for illegal purposes:

“This sort of gets the crypto people angry, but there are transactions that are not within the balance of the law. And there are, obviously, many laws in different countries. And, normally, cash is used for these transactions. But, in order for illegal transactions to occur, cash must also be used for legal transactions. You need an illegal to legal bridge. That’s where crypto comes in.”

Musk believes that it is becoming increasingly difficult to use cash, so cryptocurrencies find their niche in the global economy. However, he does not expect that someday cryptocurrencies will replace traditional ones and become the main means of payment.

“Cash, these days, is used much rarer. It’s increasingly difficult to use cash. Some places, you can’t use cash at all. So, there’s a forcing function for transactions that are illegal, quasi-legal, and in some cases legal. But it’s got to have both legal and illegal […] So where I see crypto as, respectively, is a replacement for cash. But I do not see crypto being the primary database.”

Musk previously stated that using cryptocurrencies to transfer money is much more convenient than using “pieces of paper”.

Author: Marko Vidrih

Featured image credit: Fortune