‘Governments can’t destroy crypto, but…,’ said Elon Musk this amidst Bitcoin attacks

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'Governments can't destroy crypto, but…,' said Elon Musk this amidst Bitcoin attacks

On the question of whether US government should regulate the cryptocurrency market, Musk said the administration should “Do nothing.”

“Part of it may actually be due to electricity shortages in many parts of China,” the report quoted Musk as saying. “A lot of South China right now is having random power outages, because the power demand is higher than expected.”

The decentralised nature of cryptocurrencies may present a challenge for the Chinese government at higher levels.

“Crypto mining might be playing a role in that,” he added.

Story Highlights

  • “It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement,” CNBC quoted Musk as saying during a recent tech event in California.

  • Commenting on Beijing’s crackdown against cryptocurrency, Musk said that the action might have stemmed from the country’s “significant electricity generation issues”.

“I suppose cryptocurrency is fundamentally aimed at reducing the power of a centralised government,” Musk said.

Tesla had bought Bitcoin worth $1.5 billion earlier this year, which rose in value to $2.5 billion as its value increased in the second quarter. However, Bitcoin and other cryptocurrencies have dropped owing to several misadventures.

Musk himself has been deeply involved with cryptocurrencies, with his Twitter feed full of posts on digital currencies. However, he has also accepted that it cannot solve all problems. Subscribe to Mint Newsletters

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