Tesla CEO Elon Musk has expressed support for cryptocurrencies, calling it indestructible, as worldwide regulators continue to probe the business.
He also said that the decentralised structure of cryptocurrencies could be a problem for the Chinese government.
“It is not conceivable, I believe, to destroy crypto. But governments can slow down its advancement,” Musk stated at the Code Conference in California on Tuesday, according to CNBC.
China plans to start a crypto-war
The decentralised nature of cryptocurrencies, according to the Tesla CEO, may pose a challenge to the Chinese government. Which started afresh crypto war on Friday.
“I believe cryptocurrency is fundamentally aimed at diminishing the power of a centralised government,” Musk observed. He added, “They don’t like that”. He also suggested that China’s recent crackdown on cryptocurrency is likely related to the country’s “major electrical generation concerns.”
“Electricity shortages in many places of China may be to blame for some of it. Because power consumption is higher than planned, many parts of South China are experiencing sporadic power outages right now […] Crypto mining could be a factor,” he hypothesized.
Despite the fact that Musk does not consider himself a “huge cryptocurrency expert,” he emphasised that policymakers should not try to stifle bitcoin proliferation. When asked if the US government should involve in crypto regulation, Musk replied, “I would say, ‘Do nothing”.
Elon Musk’s influence in the cryptocurrency business
Musk has established himself as a major crypto price influencer on Twitter. With numerous experts tying his tweets to big price changes in tokens like Shiba Inu (SHIB), Dogecoin (DOGE), and Bitcoin (BTC). After halting Tesla’s BTC payments option in May 2021 due to alleged environmental worries about Bitcoin mining, the Tesla CEO faced harsh criticism in the crypto community.
Tesla CEO sparked a wave of confidence in the cryptocurrency industry. When he announced a $1.5 billion Bitcoin purchase in February.