Tesla CEO Elon Musk said Tuesday the US government should avoid regulating the crypto market.
“It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement,” Musk said at the Code Conference in Beverly Hills, California.
“I would say, ‘Do nothing,’” he said.
Tesla announced earlier this year that it had purchased $ 1.5 billion worth of bitcoins. The value of these holdings rose to around $ 2.5 billion in the second quarter as Bitcoin prices soared. since then, Bitcoin has fallen along with other cryptocurrencies.
Musk, who has frequently touted his support for various digital currencies on Twitter, is optimistic about the role cryptocurrencies can play in potentially reducing “errors and latency” in legacy monetary systems, but he acknowledged that crypto doesn’t have all the answers to society’s ills.
“I wouldn’t say that I’m a massive cryptocurrency expert,” said Musk. “I think there’s some value in cryptocurrency, but I wouldn’t say it’s the second coming of the Messiah.”
Musk on China’s crypto crackdown
Musk said the heavy hand likely has to do with the country’s “significant electricity generation issues.”
“Part of it may actually be due to electricity shortages in many parts of China,” said Musk. “A lot of South China right now is having random power outages, because the power demand is higher than expected.”
“Crypto mining might be playing a role in that,” he said.
At a higher level, the decentralized nature of cryptocurrencies may present a challenge for the Chinese government.
“I suppose cryptocurrency is fundamentally aimed at reducing the power of a centralized government,” Musk said. “They don’t like that.”
