Elon Musk Considers Using Bitcoin on Mars
11 Jan, 2024 ● Crypto people
While Elon Musk, the CEO of Tesla and founder of SpaceX, was initially hesitant about the idea of using Bitcoin as currency on Mars, he seems to have slightly changed his stance on the matter.
In a Twitter Space conversation titled "ARK 21Shares Bitcoin ETF (ARKB) Approved" with Cathie Wood, the CEO of ARK Invest, Musk initially dismissed the idea of using Bitcoin on Mars due to the significant time required to settle transactions.
"It would make sense to use some kind of cryptocurrency on Mars; you couldn't use Bitcoin because the reconciliation is too long."
This discussion aligns with Musk's ongoing vision of establishing a human colony on Mars by 2050, emphasizing the need for humanity to become a multiplanetary species for survival.
However, after some contemplation, Musk suggested that it might be feasible, considering that Earth is only eight light minutes away from the sun, while Mars is approximately 12 light minutes away.
Still, he acknowledged that there would be challenges.
"Perhaps you can use Bitcoin to some degree, but it would be difficult to use it a lot on Mars," he stated, hinting at the potential necessity for a localized network on the planet.
"Mars can be like twenty light minutes away. So, it is not easy, there would have to be a localized thing on Mars."
Following this, Musk agreed with Bitcoin core developer Matt Corallo that Bitcoin's slow transaction speed could be addressed through a localized Lightning Network.
Bitcoin transactions currently take up to one hour to secure because its blockchain organizes them into 10-minute blocks, requiring confirmation of six blocks before finalizing the transaction.
However, Blockstream CEO Adam Back expressed optimism about the idea, even without a localized Lightning Network in Bitcoin's current form.
He responded to the Twitter Space conversation, stating that "12-22 light minutes is no problem with 10-minute blocks."
In April 2023, data from Glassnode indicated that the Bitcoin Lightning Network is significantly more cost-effective than traditional payment methods.
Sending value across the Lightning Network was reported to cost only 0.0029%, approximately 1,000 times cheaper than payment processors like Mastercard or Visa.
Additionally, there has been speculation about whether Musk would introduce cryptocurrency features on his platform, X, as he plans to transform it into a comprehensive "everything app."
Reports in January 2023 suggested that X's payment feature could accommodate cryptocurrencies if the opportunity arose.
However, on August 5, 2023, Musk responded to a user on X, stating that he "never will" launch a cryptocurrency token on the platform.
Sources:
https://cointelegraph.com/news/elon-musk-spacex-mars-currency-bitcoin-twitter-x-space
https://en.wikipedia.org/wiki/SpaceX_ambition_of_colonizing_Mars
https://x.com/adam3us/status/1745247310764798435
https://twitter.com/EvasTeslaSPlaid/status/1745183859581329895
