Throughout a current interview, Tesla and House X CEO Elon Musk shared his newest ideas on cash, cryptocurrency typically, Dogecoin, and Bitcoin.
His feedback got here an interview for episode #252 of the Lex Fridman podcast. Under are some highlights from Musk’s feedback throughout this wonderful interview.
Fridman and musk began this portion of the interview by speaking concerning the planet Mars and that regardless of Musk’s tweeting (roughly) that the perfect cryptocurrency for Mars is Dogecoin, Mars must have its personal utterly separate cryptocurrency (i.e. one not tied to Earth):
“Properly, we have to have a special forex as a result of you may’t synchronize attributable to velocity of sunshine — not simply… As a result of… Mars… the closest strategy is 4 mild minutes away, roughly, after which at first strategy, it’s roughly 20 mild minutes away, perhaps just a little extra.
“So can’t actually have one thing synchronizing, , should you’ve obtained a 20 minute velocity of sunshine problem. If it’s obtained a one minute blockchain, it’s not going to synchronize correctly. So I don’t know if Mars could have a cryptocurrency is a factor, however in all probability. Appears doubtless, however it could be some type of localized factor in Mars.“
Musk subsequent talked about cryptocurrency typically, calling it an “attention-grabbing strategy to lowering the error within the database that known as cash.” He went on to say:
“You understand, I feel I’ve a fairly deep understanding of what cash truly is on a sensible each day foundation due to PayPal… Proper now, the cash system –truly for sensible functions — is mostly a bunch of heterogeneous mainframes working outdated COBOL.. Pity the poor bastards who’ve to take care of that code…
“Banks are nonetheless shopping for mainframes in 2021 and working historic COBOL code. And, , the Federal Reserve, in all probability has even [something] older than what the banks have…. And so the federal government successfully has modifying privileges on the cash database they usually use these modifying privileges to earn more money each time they need. And this will increase the error within the database that’s cash.
“So, I feel cash ought to actually be seen by way of the lens of knowledge concept… and so it’s you’re type of like like an web connection like what’s the bandwidth? You understand, took whole minimize price. What’s the latency generator packet drop? You understand, errors in errors and community communication.
“After which what system, from an info concept standpoint, permits an financial system to operate one of the best and cryptos are an try to scale back the error in cash that’s contributed by governments diluting the cash provide as principally a pernicious apprenticeship filled with taxation...
“Simply consider cash as a database for useful resource allocation throughout time and house.“
Musk subsequent talked about Bitcoin and its disadvantages (vs one thing like Dogecoin) as a type of cost:
“There’s a elementary problem with Bitcoin in its present type in that its transaction quantity could be very restricted and the latency for confirmed transactions is just too lengthy — for much longer than you’d like. So, it’s not it’s truly not nice from a transaction quantity standpoint or a latency standpoint.
“So, maybe, it’s helpful to unravel a facet of the cash database downside, which is retailer of wealth or an accounting of relative obligations, I suppose. However it’s not helpful as a forex, as a day-to-day forex…
“A part of the rationale why I feel there’s some benefit to Dogecoin — regardless that it was clearly created as a joke — is that it truly does have a lot increased transaction worth functionality than Bitcoin and the prices of doing a transaction — the Dogecoin payment — could be very low.
“Proper now, should you wished to do a Bitcoin transaction, the worth of doing that transaction could be very excessive and so you can not use it successfully for many issues. Nor might it scale to the next quantity…
“When Bitcoin was began — round 2008 — the web connections had been a lot worse than they’re as we speak, like an order of magnitude…. I imply there’s the best way manner worse, , 2008. So having a small block measurement and an extended synchronization made sense in 2008, however in 2021, it’s like comically low…
“And I feel there’s some worth to having a linear improve within the quantity of forex that’s generated… If a forex is just too deflationary… there’s a reluctance to spend it… But when this some dilution of the forex occurring over time, that’s extra of an incentive to make use of it as a forex.
“So, Dogecoin, form of randomly, has only a mounted variety of cash… that generate yearly. So, there’s some inflation, nevertheless it’s a hard and fast quantity. So, the proportion of inflation will essentially decline over time. I’m not saying that it’s like the perfect system for a forex, however I feel it truly is simply essentially higher than anything I’ve seen — simply accidentally.“
The views and opinions expressed by the creator, or any individuals talked about on this article, are for informational functions solely, and they don’t represent monetary, funding, or different recommendation. Investing in or buying and selling cryptoassets comes with a danger of economic loss.