Elon Musk is in disbelief of the power of governments over crypto. With the biggest crackdown of China on crypto yet, Tesla CEO Elon Musk has a take of his own on the matter.
According to Musk, while China has clearly stated its distain for the crypto industry, and while the drivers of the crackdown are speculative at best, the most probable motivation is the decentralized nature of blockchain perceived as a nemesis of the Chinese centralized government.
“I suppose crypto is fundamentally aimed at reducing the power of centralized government and they don’t like that, is my guess.”
Musk firmly believes that the reluctance of governments to accept crypto as legal tender or even merely allowing exchange and investment for their citizens makes crypto all the more valuable because they can’t dip their hands on the cookie jar nor edit the money database.
However, Elon Musk posits the possibility of power outages in the Southern provinces of China as a driver of the crackdown too.
In discussing his tweet power over the crypto industry volatility, Musk playfully indicated that the market going up is ultimately a good sign.
In that, Elon Musk is a firm believer that cryptocurrencies are a long-term project, and while governments cannot destroy it, they can slow down its progress with the way the regulations are tightening.
In the matter of SEC claiming jurisdiction over crypto, Musk stated that in his opinion, the SEC should refrain from taking any further action.
While Elon Musk does not fancy himself an expert of cryptocurrencies, he believed that there is potential at the very least in reducing the errors of the present financial sector.