As China definitively cracked down on cryptocurrencies, Tesla CEO s said that it is not possible for governments to destroy cryptocurrencies. He, however, warned that progress of growth for Bitcoin and similar digital currencies can be hampered by governments.
“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.
On the question of whether US government should regulate the cryptocurrency market, Musk said the administration should “Do nothing.”
Commenting on Beijing’s crackdown against cryptocurrency, Musk said that the action might have stemmed from the country’s “significant electricity generation issues”.
“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.”
“Crypto mining might be playing a role in that,” he added.
The decentralised nature of cryptocurrencies may present a challenge for the Chinese government at higher levels.
“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.
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