The decentralized foundation of cryptos might be a problem for the Chinese government, Elon Musk has said.
As global officials scrutinize the crypto industry, Elon Musk has shown support for crypto, saying it was indestructible.
“It is not possible to, I believe, destroy cryptocurrency, but it is possible for these authorities to slow its progress,” Musk said during the Code Conference, as reported by CNBC.
According to the CEO of Tesla, the decentralized foundation of cryptos might be a challenge for the government of China, which announced their war against crypto last Friday.
“I suppose cryptocurrency is about lowering the power of a centralized government,” Musk said, adding, “They do not like that.” He also said that the new Chinese crackdown against crypto is possibly to have something to do with the country’s “great electricity generation problems.”
“Part of it might be due to shortages of electricity in many areas of China. A lot of South China is having random power outages since the power demand is so high […] Crypto mining could be playing a role in this,” he said.
Despite Musk not thinking of himself as a “massive crypto expert,” the tech mogul said that regulators should not be attempting to slow down crypto adoption. When asked whether the U.S. government should get involved in regulating cryptocurrency, Musk said:
“I would say, they should do nothing.’”
Musk has come up as a significant cryptocurrency price influencer via Twitter, with many experts connecting his posts to huge price moves for tokens such as Dogecoin (DOGE), Shiba Inu (SHIB), and of course Bitcoin (BTC). The Tesla CEO was widely slammed within the cryptocurrency community after suspending Tesla’s Bitcoin payments over what was said to be environmental worries about mining back in May of this year.
Musk previously caused a lot of optimism in the crypto market by saying his company made a huge $1.5-billion Bitcoin buy in February.
This comes at a time when cryptocurrencies like Bitcoin are also being targeted by regulators in the United States due to their connection and uses in the cybercrime industry worldwide, according to officials.
Author: Steven Sinclaire