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  • Rosalia Mazza

Elon Musk is the Star of The B Word

Updated: Dec 7, 2022

By Rosalia Mazza

On July 21, 2021 took place the The B Word - How Institutions Can Embrace Bitcoin.

One of the sessions, Bitcoin as a Tool for Economic Empowerment, was live. Featured speakers were Cathie Wood - founder, CEO and CIO of ARK Invest, Jack Dorsey - CEO of Square, Inc. - and Elon Musk - Technoking of Tesla, with Steve Lee - lead for Square Crypto - as the moderator of the panel.

Despite these outstanding speakers, all the eyes were on Elon Musk.

The CEO of Tesla and SpaceX is not new to this kind of attention.

Over the past year, he suffered many critics, as well as a surge of new adepts in the crypto space.

We all know his tweets about Dogecoin and his change of route about Bitcoin.

But this time it seems that Elon Musk is definitely a supporter of cryptos, despite some legitimate reservations.

Bitcoin’s Pros and Cons

Many were the topics discussed at the conference, but one is the main concern of all of us: will Bitcoin become the currency of the future?

As we all know, Bitcoin is the first system that allowed people around the world to exchange and store value without any intervention by third institutional parties.

But it is true that as the crypto market rises, many are the questions about how long can the market survive without a minimum regulation or without the intervention of third parties - not necessarily public parties.

Elon Musk addressed the problem very well: if Bitcoin will become more scalable, then it might be the cryptocurrency of the future.

The best solution found so far is to add a Layer-2 technology: Layer-2 is a network added to the basic Layer-1 - that is, the blockchain - that works on the data and returns them to the blockchain just to verify solutions. Bitcoin is using the Lightning Network as the second layer, but it seems not enough, since it works for small transactions.

Not the whole crypto community agrees with this fix: a third party intervention would sacrifice too much decentralization, the core feature of cryptocurrencies and Bitcoin in particular.

Will this cause another revolution in the crypto world?

Maybe not even Nakamoto expected such a success for Bitcoin and cryptos, and it’s up to today’s crypto geniuses to find a compromise.

The transition to renewable energy

It’s not a mystery that one of the main cons of cryptos is that they need a lot of energy to be mined.

One of the first who highlighted this problem was Bill Gates.

This doesn’t allow cryptocurrencies to be sustainable assets.

Many proposals are on the table: storing wind and solar energy to constantly mine cryptos is one of them, but the subject is still something we need to think of and we need to make sustainable mining a common practice.

Also Elon Musk said that Tesla will re-allow payments in Bitcoin if miners will use at least 50% of renewable energy in the process of mining cryptos.

You can find the whole session on demand on The B Word.

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