Serial entrepreneur Elon Musk described bitcoin as ‘brilliant’, saying it offers a better alternative to paper bank notes.
The founder and CEO of SpaceX and Tesla made the comments in a podcast interview this week. He did so in response to direct questioning on his views on cryptocurrency.
“It bypasses currency controls…Paper money is going away. And crypto is a far better way to transfer values than a piece of paper, that’s for sure.”
The comments are the latest big name support for cryptocurrency as an alternative to regular payments. A growing number of entrepreneurs are now known to back cryptocurrencies like bitcoin for their benefits over fiat currency payments.
Digital currency allows for cheaper transactions, without the need for the same physical storage and security involved in cash transactions. No third party to the transaction, such as a bank or payment institution, also means significantly reduced fees. Meanwhile, transactions benefit from the security features of blockchain tech.
His comments come at a time of an apparent uptick in fortunes for bitcoin and other cryptocurrency markets, with analysts expecting a significant price rebound over the coming weeks.
Musk has been keen on cryptocurrency in principle. However, he has also pointed out that there were still some factors that were preventing companies from adopting digital currency on a mass scale.
For example, the “computationally energy intensive” process of securing the bitcoin blockchain meant it was not currently “a good use of Tesla’s resources to get involved in crypto.”
For corporate users, bitcoin allows for low cost, fast, secure transactions that are independent of traditional payment and banking infrastructure. These users range from small businesses to global banks, hedge funds and investment companies. This means companies can benefit from cheaper, quicker transactions, resulting in significant efficiency savings year on year.
Many people had considered Musk to be pro-cryptocurrency. This week’s comments subsequently confirm the billionaire entrepreneur as the latest tech visionary to see the benefits of cryptocurrencies like bitcoin. Both now, and in the future.