In a rare comment from Elon Musk about cryptocurrency, Tesla and SpaceX said the founder that Bitcoin "is quite brilliant."
"Paper money goes away and crypto is a far better way to transfer value than pieces of paper, that's for sure, but it has its advantages and disadvantages."
Musk also gave Ethereum props at ARK Investment podcast Tuesday (hear here):
"It seems like there are some benefits to Ethereum."
Elon Musk: Bitcoin is brilliant, but Tesla is not in the process of full-crypto
There is a strong recommendation of cryptocurrency and Bitcoin comes from Silicon Valley wunderkind Elon Musk, billionaire engineer / entrepreneur who played a major role in digital payments as he merged his online banking start up X.com with Peter Thiel's outfits a few quarters away to form PayPal.
But despite his high praise for Bitcoin and his belief that Cryptocurrency is inevitable, it becomes the dominant financial infrastructure for the world, Musk says he will not get Tesla Motors involved in the room:
"But I am not sure it would be a good use of Tesla's resources to get involved in crypto. "
Of course, Bitcoin and cryptocurrency are not something that should address some of Musk's time. He has made his hands work on average 42 hours a week at Tesla and 40 hours a week at SpaceX. He wants to know – he organizes the day into 5-minute slot machines.
Krypto a great opportunity for entrenched Tech Firms
Tesla is a car company, and SpaceX is an aviation technology company. They are both very special companies, the only companies in the world that do exactly what they do on the scale they do. The ability to harvest years of massive monopoly profits when they reach the scale is their most lucrative opportunity, and they should remain focused on it.
And Tesla is not yet profitable yet, and SpaceX is also not profitable. They have a few years of daily battles in front of them to reach the pinnacle of their own domain.
On the other hand, old guard tech titans such as Microsoft and Google, who have had many years to sit back and reap that kind of profit, have more than enough extra skin to put in the game, and they go pretty cleverly into the crypto industry. at least indirectly.
Microsoft's cloud services will support the New York Stock Exchange's upcoming Back Crypto Exchange, and Google has been with Goldman Sachs, one of the largest corporate investors in the cryptocurrency industry businesses.
The day Musk made his comments on Crypto, Bitcoin and Ethereum, Google became the first technological giant to add the Bitcoin symbol to the keyboard of its IOS apps.
Tesla can't get into bitcoin, but crypto gets into cars
Although it may be many years before Tesla has a good grasp of its current business to make a serious advance on crypto competition, it seems likely to be due to Tesla's specialty in electric batteries and ultra capacitors.
This will create many opportunities for Tesla to get involved in Proof of Work cryptocurrencies like Bitcoin, due to the very close relationship between PoW coins and electricity, in line with this Reddit user's comment on Bitcoin subreddit 2 years ago:
"This is the future of bitcoin. Ability to convert unused electricity into money, and if necessary, the money can be used to buy back electricity."
Why Tesla will eventually dive into Bitcoin
You can easily imagine Tesla and other similar high-tech energy companies that decentralize the power grid. Instead of a centralized power grid with each end-user drawing electricity from a central source of mass-produced energy, you can imagine a decentralized, peer-to-peer electricity production network.
Each building that generates and stores its own solar power from Tesla Solar Roof Tiles or Tesla Power Walls is a complete hub of this power grid in the near future.
And Bitcoin or another PoW cryptocurrency conveys a sharing economy of electricity among nodes on this network in fashion described above. It reminds me how some powerful ponds store excess electricity by using it to pump water back uphill, and let the water fall when they want to convert potential energy back into electricity.
Human civilization is about to produce an era setting tidal wave of affordable, clean, renewable energy. And Elon Musk leads the management. Bitcoin can help us get every bit of value out of all that power, with no watts left.
So will Elon Musk go full crypto? It's just a matter of time.
Elon Musk Picture from REUTERS / Aly Song