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Highlights
- Terming it as an “indestructible force”, Musk said that it will be impossible for regulators to destroy cryptocurrencies.
- Musk suggested that the US government should do nothing about the cryptocurrencies.
- Earlier this year, Musk had said he purchased Bitcoins worth US $1.5 billion.
As the regulators around the world are dishing out regulations and enforcement on cryptocurrencies, Tesla CEO Elon Musk has expressed his unconditional support for cryptocurrencies. Terming it as an “indestructible force”, Musk said that it will be impossible for regulators to destroy cryptocurrencies.
The comments were on the recent developments in China and the US, where steps to either regulate or ban the digital currencies are already taking place. Recently, China decided to ban cryptocurrencies as a mode of traditional payment, tokens/coins. The decision came in as a big jolt to the holders of the cryptocurrencies as the services provided by the offshore exchanges to domestic residents would be deemed illegal.
Also read: UK Investors Can Get Automated Crypto Tax Reporting On Crypto.Com
Not only that, for people who are involved in cryptocurrency activities such as trading, selling tokens, etc. will face stringent punishments.
Musk and cryptocurrencies
Musk has been an ardent fan of cryptocurrencies and in fact openly supported Dogecoin – the meme-based coin and Shiba Inu. His tweets were one of reason for the market crash that the digital currencies witnessed in May earlier this year.
According to the Tesla CEO, crypto being decentralized in nature sort of reduces the power of the government and it could be one of the reasons why the Chinese government felt so threatened by it. Besides, he added that as the China itself could be facing significant electricity generation issues, it wanted to crypto mining too to be stopped on an immediate basis.
Also read: All Crypto Transactions Are Illegal, Says China's PBOC
As a result of China’s crackdown, many companies and exchanges have either already packed their offices or are in the process of bailing out of the country.
Musk critical of US government
Not just China, Musk has been critical of the United States government’s stance on regulating the cryptocurrencies. Musk was of the view that it would be impossible for anyone to destroy cryptocurrencies overall, but various governments around the world are capable of slow down its advancement. Musk said that the government should leave the cryptocurrencies alone and let it prosper.
Tesla had purchased Bitcoins worth US $1.5 billion which resulted in Tesla’s holding swell to about US $2.5 billion in the second quarter as bitcoin prices surged. Musk himself in July stated that he personally owns some Bitcoins, Dogecoin and Ethereum. Musk often said that he would not dump the cryptos irrespective of its prices and was of the view that he would like to see bitcoin succeed.
Conclusion
Musk’s comments have raised a few eyebrows and the market too seem to respond positively to it. According to CoinMarketCap, the BTC is trading at US $42,097.22 with a 24-hour trading volume of US $30,531,290,159. At the time of writing (BST 2:15pm), BTC was up by 0.55% in the last 24 hours and had a live market cap of US $792,919,411,485. Time will tell if the rally can push Bitcoin back to month high after seeing few days of bearish run.
