FameEX Hot Topics | 'Elon Musk First Criticizes, Then Contemplates Using Bitcoin on Mars

Billionaire entrepreneur Elon Musk has discussed the possibility of using Bitcoin on Mars, although he acknowledges the challenge of transaction settlement speed. During a conversation on Space on X (formerly Twitter) with ARK Invest CEO Cathie Wood, Musk initially raised concerns about Bitcoin's slow settlement times. However, he later suggested that it might be feasible, given the proximity of Mars to Earth in terms of light minutes. Musk also hinted at the potential need for a localized network on Mars to overcome the challenges. Bitcoin core developer Matt Corallo and Blockstream CEO Adam Back also shared their thoughts on the matter.

Musk's interest in using cryptocurrencies on Mars aligns with his vision of establishing a human colony on the planet by 2050. He believes that becoming a multiplanetary species is essential for humanity's survival. One of the primary challenges with using Bitcoin for transactions on Mars is its slow confirmation time, which can take up to one hour. Bitcoin's blockchain assembles transactions into 10-minute blocks and requires confirmation of six blocks for finalization. Musk and others discussed the possibility of addressing this issue through a localized Lightning Network, which could potentially facilitate faster transactions.

Despite the challenges, Musk seems open to exploring the use of cryptocurrencies on Mars, and his interest in the topic has generated discussions within the crypto community. Blockstream CEO Adam Back expressed optimism about the idea, suggesting that Bitcoin's current block time of 10 minutes could work for transactions with a light-minute delay. It's worth noting that the Bitcoin Lightning Network, a layer-2 scaling solution for Bitcoin, has demonstrated cost-efficiency in comparison to traditional payment processors like Mastercard and Visa. According to Glassnode data, the cost of sending value across the Lightning Network is approximately 1,000 times cheaper than traditional payment processors.

Additionally, there have been speculations about Musk's plans to integrate cryptocurrencies into his platform, X (formerly Twitter), as part of its transformation into an "everything app." While Musk has previously stated that he "never will" launch a crypto token on X, reports suggest that the platform's payments feature could potentially accommodate cryptocurrencies in the future.

Elon Musk's interest in using cryptocurrencies on Mars reflects his visionary approach to space exploration and technology innovation. While there are challenges to overcome, the discussions surrounding this topic highlight the growing relevance of cryptocurrencies in various aspects of human activity, including interplanetary endeavors.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.