HomeCryptocurrencies unlikely to replace fiat currencies, says Elon Musk

Cryptocurrencies unlikely to replace fiat currencies, says Elon Musk

Hassan Maishera

Elon Musk has been named the Person of the Year for 2021, and he gave an interesting interview that included cryptocurrencies.

SpaceX and Tesla CEO Elon Musk has been named the Times Person of the Year 2021 by the Times Magazine. This latest development makes him the most influential person in the world at the moment.

During his interview with Times Magazine, Musk said he finds cryptocurrencies very interesting. However, he doesn’t believe that they will replace fiat currencies. The Tesla CEO has always been an admirer of cryptocurrencies, especially Dogecoin.

He stated that he finds cryptocurrencies interesting and can talk endlessly about the concept of money as an information system for resource allocation. However, he doesn’t think cryptocurrencies will do the job of fiat currencies at the moment.

Elon Musk also talked about Dogecoin and Bitcoin. He has always discussed his admiration for the meme coin and used the occasion to promote it. According to Musk, Dogecoin is a better cryptocurrency for everyday payments compared to Bitcoin. He told Times Magazine that;

“Fundamentally, bitcoin is not a good substitute for transactional currency. “Even though it was created as a silly joke, Dogecoin is better suited for transactions. The transaction volume of bitcoin is low, and the cost per transaction is high.”

Musk pointed out that Bitcoin is more suitable as a store of value at the moment. Hence, the reason why investors tend to hold on to it rather than sell it or use it for transactions.  The argument regarding Bitcoin’s best use case has been raging on in the cryptocurrency space for the past few years.

The broader cryptocurrency market has been underperforming in recent weeks. Bitcoin’s value is down by more than 30% from the all-time high of $69,044 it achieved last month. Dogecoin is also struggling and is no longer one of the top ten cryptocurrencies by market cap.

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