“I wouldn’t say that I’m a massive cryptocurrency expert,” said Musk. “I think there’s some value in cryptocurrency, but I wouldn’t say it’s the second coming of the Messiah.”
Musk comments on China’s crypto crackdown
Musk mentioned China’s continued crackdown on crypto mining and illegalizing crypto transactions.
Last week, China’s central bank imposed harsh measures on the cryptocurrency space. The Asian country illegalized transactions in crypto and prohibited the mining of any digital currency.
Musk said the heavy hand likely has to do with the country’s “significant electricity generation issues.”
“Part of it may actually be due to electricity shortages in many parts of China,” said Musk. “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 said.
At a higher level, the decentralized nature of cryptocurrencies may present a challenge for the Chinese government.
“I suppose cryptocurrency is fundamentally aimed at reducing the power of a centralized government,” Musk said. “They don’t like that.”
