The centibillionaire CEO of Tesla, Elon Musk, has taken to Twitter to condemn the current fiat money system. Musk said the current system of money relies on an “ancient” computer programming language and computer system in an age where technology has improved on computing systems with a lot of penetration across different industries.
Musk tweeted this in reply to Billy Markus, the co-founder of the popular memecoin, Dogecoin. Markus had tweeted that he was convinced that less than 1% of the people who talk about cryptocurrency know something about it. Markus then went on to explain a fundamental principle of cryptocurrencies. He said that the value of cryptocurrencies and NFTs depends on people buying and selling them at different prices.
But in his reply, Musk said
Cryptocurrencies and Fiat Money
For a long time now, experts have talked about the limitations and shortcomings of fiat money and how they have impacted economies around the world. It has not helped that the US inflation rate has risen steadily over the last year and effectively reduced the purchasing power of the dollar. This has led to more campaigns for cryptocurrency adoption around the world as more people think that they are better than the fiat money system.
In response to Markus’ tweet, MicroStrategy CEO Michael Saylor stated that a single ledger with a fixed supply is required. Saylor’s MicroStrategy owns the largest Bitcoin stockpile for a corporate company and he’s a known Bitcoin advocate.
Last week, Saylor had tweeted that purchasing Bitcoin should be the next step in the plan to escape inflation and protect the value of money. He made that tweet after Elon Musk asked for opinions about selling some of his Tesla stocks.
The debate about cryptocurrencies being better than fiat money has been around for a decade now, but it looks like cryptos are winning strongly. This has led popular figures such as Saylor, Musk, and Markus to slam fiat money and praise cryptocurrencies.
What is The Future of Cryptocurrencies
Although cryptocurrencies have achieved a comparatively massive stride since Bitcoin first made waves in 2009, the future is brighter and better. Analysts have predicted that it won’t be long before financial institutions begin to adopt cryptocurrencies.
There is still the issue of government regulations and control. Yesterday, the Indian Parliament Panel on Finance held a hearing about cryptocurrencies in an attempt to find a way forward for cryptocurrencies in the nation. In the US, crypto-based ETFs are only a few months away from proliferating the stock market. The US SEC has already approved a few and is set to approve more.
As more industries, brands, and institutions adopt blockchain technologies, it won’t be long before cryptocurrencies replace fiat money as the preferred financial system. Of course, issues like security, network congestion, and high transaction fees must be resolved first.