Elon Musk declared that he is no longer as interested in cryptocurrencies.
When asked about bitcoin’s possible impact on the financial system on December 21, CEO of Ark Invest Cathie Wood asked Musk, “I don’t spend a lot of time thinking about cryptocurrency—hardly any at all.” Musk responded.
Musk went on, “I have been thinking about money and its nature for a long time. “What is the definition of money? In actuality, it’s a resource allocation database.
Musk went on to say that as long as there are regulations and no government misuse, fiat money is “actually fine as a database for resource allocation.”
Musk stated that he would consider the monetary system to be an application of information theory to financial issues. “Consider it as an information system,” he advised. “You want to keep delay, packet loss, and noise to a minimum. Therefore, inflation would increase the system’s noise.
Musk made this statement when it seems like Tesla, his company, is still holding digital assets on its financial sheet. According to Tesla’s third-quarter earnings, the company had digital assets valued at $184 million at the end of September.
Based on statistics from bitcointreasury.net, the manufacturer of electric vehicles possesses the third-largest bitcoin holdings among publicly traded firms, after MicroStrategy and Marathon Digital Holdings. Dogecoin may also be used to pay for Tesla.