Elon Musk Rethinks Bitcoin Use on Mars Amid Talk of Localized Crypto Network
Summary:
Elon Musk, CEO of Tesla and SpaceX, originally opposed the notion of using Bitcoin as Martian currency due to its slow transaction settlement speed. However, he's now reconsidering after understanding the potential feasibility given Earth's and Mars' proximity to the sun. Interestingly, Bitcoin core developer Matt Corallo's suggestion of a localized Lightning Network for faster transactions has received Musk's nod. Meanwhile, Adam Back, CEO of Blockstream, remains optimistic about Bitcoin's use on Mars even without a localized network. Previous rumors have hinted at the incorporation of cryptocurrencies in Musk's project X, with reports suggesting potential plans to accommodate them.
Tesla's CEO and SpaceX founder, Elon Musk, was originally skeptical about the idea of employing Bitcoin (BTC) as Martian money, but appears to be reconsidering his stance, albeit slightly. During an 'ARK 21Shares Bitcoin ETF (ARKB) Approved' conversation with ARK Invest CEO Cathie Wood, he initially dismissed Bitcoin for Martian utilization, highlighting the extended time required for transaction settlement. Musk voiced his belief that though some form of digital currency could be efficiently employed on Mars, the slow pace of Bitcoin reconciliation could be a deterrent. This elaboration comes within the context of Musk's futuristic ambition of establishing a Martian colony by 2050, arguing the imperative for human existence on multiple planets as a survival strategy.
Nevertheless, upon solo rumination, Musk admitted to the possibility of Earth being just eight light minutes away from the sun and Mars being about 12, Bitcoin could have some merit but would still face hurdles. To quote Musk, "Bitcoin can be used to some extent, but it would be challenging to use it extensively on Mars." This could necessitate the establishment of a localized network on Mars. Musk's reticent concession to Bitcoin's sluggish transaction speed was further emphasized by his agreement with Bitcoin core developer Matt Corallo's suggestion for a Mars-specific Lightning Network.
Presently, Bitcoin transactions take up to 60 minutes due to the blockchain accumulating them in 10-minute blocks, each requiring six confirmations before finalizing the transaction. But Adam Back, Blockstream's CEO, remained upbeat about the concept, with or without a localized Lightning Network in Bitcoin's existing form. Back responded to the ongoing discourse, expressing his view that Bitcoin's 10-minute blocks shouldn't pose a problem even with the 12-22 light minutes distance.
According to Glassnode data from April 2023, Bitcoin’s Lightning Network is markedly more cost-effective than traditional payment methods. Glassnode established that the cost of transactions via the Lightning Network is a mere 0.0029%, almost 1,000 times less than Mastercard or Visa charges.
Rumors have circulated about Musk's potential incorporation of cryptocurrencies in X, which he aims to develop into a universal application. Early 2023 reports suggested that two insiders with knowledge of X's future plans mentioned the possibility of integrating cryptocurrencies if the opportunity presents itself. Musk, however, denied any intentions of launching his cryptocurrency token on X in response to a user query on August 5.
Published At
1/11/2024 8:46:34 AM
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