Elon Musk has finally made his crypto views public. No, not another phony Elon Musk on Twitter, the real Elon Musk.

In a podcast interview with investment firm ARK Invest, Musk said that he believes paper money is going away. He continued, “Crypto is a far better way to transfer value than pieces of paper, that’s for sure.”

In particular, Musk said the technology behind bitcoin is "quite brilliant" and "it seems like there is some merit to Ethereum and maybe some of the others."

Is Musk Right About Paper Money?

Musk's prediction that paper money "is going away" is bold, but likely. In an increasingly digital world, it only makes sense that a universal digital currency (or currencies) will be necessary. Here are a few reasons why...

  1. Crypto is less likely to be subject to manipulation. Blockchains are immutable. They create tamper-proof digital records of asset transfers that increase transparency and accountability
  2. Transactions made with crypto cut out the middleman, reducing costs and increasing the speed of transactions.
  3. Crypto can reduce the potential of hyperinflation. Around the globe, people have lost their wealth due to their government’s excessive printing of paper money. Since assets like Bitcoin have a fixed supply, they can’t be devalued by inflation.

The billionaire entrepreneur's position on crypto offers a bullish signal, in an otherwise bearish market. Despite his appreciation for the technology, he's not rushing to get Tesla involved in crypto just yet. In the podcast, he explained that he doesn’t believe crypto is a good use of the company’s resources.

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