Note that this is not the first time Musk has touched on the topic of money and cryptocurrencies this December. In particular, in an interview with Time Magazine journalists, who recognized him as Man of the Year, Elon called Dogecoin a good tool for making payments. At the same time, Musk does not consider Bitcoin as such, because the speed of transfers in the cryptocurrency leaves much to be desired.

However, representatives of the cryptocurrency community criticized Elon’s statement. However, the Bitcoin-based Lightning Network is just fine for day-to-day shopping and transactions. That said, Musk has now taken the crypto side again.

What are the advantages of cryptocurrencies

According to Ilon, the current paper-based financial system is far from perfect, as governments can “dilute the money supply” by almost endlessly issuing new notes. Cryptocurrencies, on the other hand, are a technological innovation that “brings us into the 21st century”.

Unlike many people who are convinced that money has power, Musk believes it should be looked at “through the lens of information theory”. That is, the technology behind cryptocurrencies seems to be the most efficient form of transaction. Here’s a quote from the entrepreneur, in which he shared a vision of what’s going on

Think of money as a database for allocating resources across time and space. In what form that data system should be most effective.

In other words, Musk doesn't think conventional national currencies are an appropriate form of settlement in today's world. Digital assets - and especially those based on an immutable, transparent blockchain - do much better in this role.

Tesla CEO Ilon Musk on the cover of TIME magazine

However, Bitcoin and altcoins are “not perfect”, although they are the best monetary alternative today. Here’s another quote on the subject, published at CryptoPotato.

I’m not saying crypto is the perfect system, but I think it’s actually fundamentally better than anything I’ve seen.


As a reminder, in the case of many cryptocurrencies, they are characterised by limited issuance, i.e. maximum supply. In other words, coins cannot be printed at will by the authorities or bankers, which keeps their issuance at the same level.

On top of that, some cryptocurrencies become deflationary because of the regular burning procedure. This means that their numbers in circulation decrease over time.


Buying cryptocurrencies

In addition, the billionaire has once again refuted rumours that he is allegedly the anonymous creator of Bitcoin, Satoshi Nakamoto. According to Musk, the most suitable candidate for this role should be considered the famous computer genius and cryptographer Nick Szabo.

I don’t know who created Bitcoin, but the evolution of ideas in cryptography prior to its launch is pretty clear, and it seems that Nick Szabo is more responsible than anyone else for the development of such ideas.

In the meantime, the first predictions about Bitcoin’s price from prominent analysts and crypto-enthusiasts have already emerged for next year, 2022. Among them are former Block One cryptocurrency executive Brock Pierce and Fundstrat Global Advisors co-founder Tom Lee.

The $200,000 line on Bitcoin’s 1-day chart

Both agree that the major cryptocurrency is well-positioned to hit the $200,000 mark in the next 12 months. However, Pierce and Lee’s predictions for this year never became a reality. To recap, they had previously said that Bitcoin would reach the $100,000 line by December 31, but it never happened.


This means that the popular personalities are willing to keep making loud statements, even if their predictions are not even close to being true. We therefore advise to be very cautious about these versions. Apparently, they are voiced solely for the sake of attracting attention.


Bitcoin’s rise


We believe that cryptocurrencies do outperform conventional money in terms of their properties. They are transparent, fast and in addition are ideal for making international payments without any intermediaries. In addition, no one can influence their issuance, as the pace of new coins is outlined in the cryptocurrency code.


Will their new prediction become a reality? Follow the market developments in our Millionaire Crypto Chat. There we will talk about other topics related to the world of blockchain and decentralisation.