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Crypto news: Elon Musk declares fiat currency a scam, impact on Bitcoin’s future

Recently, Elon Musk labeled fiat currency a “scam,” adding further debate to discussions about the relevance of crypto Bitcoin vis-à-vis conventional financial systems. See below for all the details. 

Elon Musk: bold statements on fiat currencies, what is the role of crypto Bitcoin?

As anticipated, in one of his usual bold and provocative posts, Tesla and SpaceX CEO Elon Musk once again generated havoc in the financial world by declaring that the “fiat currency” is a scam. 

Specifically, Musk made this statement in response to a post raising debate about the concept of a scam, suggesting that some scams are so normalized that many people do not realize it.

The term “fiat currency” refers to traditional money issued by governments, such as the US dollar, euro or yen, which is not backed by a physical reserve like gold, but relies on the trust and authority of the issuing government. 

Hence, Musk’s statement further ignited the ongoing debate about the position of crypto assets, such as Bitcoin, in the context of traditional financial systems.

Not surprisingly, many Bitcoin supporters welcomed Musk’s tweet, interpreting it as an endorsement of the digital currency. In fact, they see Bitcoin as an alternative to fiat currency, emphasizing its decentralized nature and resistance to inflation.

Despite the brevity of Musk’s post, his statement fuels the growing discussion about Bitcoin’s role in modern finance. 

It remains to be seen whether Musk will provide further details about his views on fiat currency, or whether this statement will simply be another example of his enigmatic presence on social media. Either way, it is unlikely that the debate over the coexistence of traditional and digital currencies and the future of money will end anytime soon.

Tesla’s possibility of resuming payments in Bitcoin

As we know, in 2021, Elon Musk announced that Tesla would stop accepting payments in Bitcoin due to environmental concerns about mining this crypto.

However, he also left open the possibility of resuming Bitcoin payments once mining becomes more sustainable, at least 50%.

Now, a recent Bloomberg report has confirmed that Bitcoin mining currently uses more than 50 percent renewable energy sources, a significant figure that opens the door to a possible return of Tesla to Bitcoin payments. 

This would represent a major boost for the cryptocurrency industry. Moreover, the reasons why Tesla might consider resuming payments with Bitcoin are many. 

First, it would expand the potential customer base. Second, it would protect Tesla from inflation. Third, it would represent a signal of support for Bitcoin and the cryptocurrency world.

However, there are challenges to overcome, such as ensuring that customers feel comfortable using Bitcoin as a payment method.

Overall, Tesla’s assumption of a return to Bitcoin payments is a positive step for the cryptocurrency industry and could have a significant impact on the demand and price of Bitcoin, as well as further legitimize this cryptocurrency as a form of payment.

Elon Musk and the changes for X in a conversation with the Dogecoin team

During a recent exchange that piqued the interest of tech enthusiasts, Elon Musk, CEO and owner of X (the former Twitter), suggested a major upcoming update while chatting informally with a prominent member of the Dogecoin (DOGE) team.

The conversation began when the Dogecoin designer suggested replacing the iconic birdhouse icon currently used to represent the “home” feature on X. Musk promptly responded with an intriguing statement, saying: 

“We will make this change.”

The move is not surprising considering the new owner’s determined effort to eliminate ties to the previous era of X. Indeed, since Musk’s acquisition of Twitter about a year ago and subsequent rebranding, he has worked tirelessly to redefine the platform’s identity. 

In particular, he replaced the iconic blue bird logo with the simple letter “X,” a change that generated significant discussion and debate. Led by Musk, X is in the process of transforming from a microblogging platform into a super app

The vision includes integrating financial services, such as payments and banking, directly within the platform. To facilitate this process, X has obtained money transfer licenses in several US states, including Arizona, Missouri, and Georgia.

One of the latest innovations proposed by the new leadership is the introduction of a “small monthly fee” for users, mainly to address bot and spam issues. Musk believes this subscription-based model is the most practical way to combat the persistent problem of automated accounts.

Alessia Pannone
Alessia Pannone
Graduated in communication sciences, currently student of the master's degree course in publishing and writing. Writer of articles from an SEO perspective, with care for indexing in search engines.