Elon Musk, the CEO of Tesla and SpaceX, suggested that money could become largely irrelevant by 2036 due to advancements in artificial intelligence and robotics. Musk made these remarks in a discussion with Zanny Minton Beddoes, editor-in-chief of The Economist, at a time when Bitcoin and the broader cryptocurrency market are facing downward pressure.
Musk’s vision: AI and a future of abundance
Musk explained that money currently serves as a medium for people to access goods and services such as food, housing, transportation, and entertainment. However, he believes that ongoing progress in robotics and AI could lead society to produce a surplus of goods and services, surpassing what people can actually consume.
If robotics technologies enable the cheap and efficient production of essential items, Musk expects scarcity to lose its significance in many parts of the global economy. As a result, the reliance on money to secure basic needs could sharply decline.
Musk anticipates that the rapid evolution of AI and automation will reshape how work and production are distributed. Machines may soon handle a substantial share of the tasks now performed by humans, from manufacturing and transportation to providing core necessities at a scale never before seen.
Under such circumstances, people might stop using money in the traditional manner. Musk also raised questions about the point of accumulating wealth when technology can provide individuals with more goods and services than they could ever consume.
Implications for Bitcoin and cryptocurrency
Musk’s remarks have attracted particular interest among Bitcoin supporters. In the past, he has described energy as the essential basis for money, noting that Bitcoin mining consumes considerable computational resources and electricity. This viewpoint has resonated with many in the cryptocurrency industry who see Bitcoin as being directly tied to energy consumption.
He further argued that while governments are able to print more fiat currency, energy cannot be artificially created. These comments have fueled ongoing speculation that Musk views Bitcoin as a more robust monetary system compared to traditional government-issued money. However, he has not made an outright statement endorsing Bitcoin as the world’s primary currency.
Tesla and SpaceX, two major ventures led by Musk, are known to hold significant Bitcoin reserves. Publicly available information indicates SpaceX holds about 18,712 Bitcoin, while Tesla owns roughly 11,509 Bitcoin. At a recent price of $65,000 per Bitcoin, their combined cryptocurrency assets would be valued at close to $2 billion.
| Company | Bitcoin Holdings | Estimated Value (at $65,000/BTC) |
|---|---|---|
| Tesla | 11,509 BTC | $748,085,000 |
| SpaceX | 18,712 BTC | $1,216,280,000 |
| Total | 30,221 BTC | $1,964,365,000 |
Potential effects on currency and digital assets
The timing of Musk’s prediction coincides with turbulent conditions in the crypto sector. Bitcoin recently dropped below $65,000 in February and continues to face challenges in establishing a clear recovery trend.
If society develops to the point where goods and services are universally accessible, Musk’s scenario suggests the demand for all currencies could contraction. Yet, Bitcoin might be positioned to maintain value for several reasons, including its capped supply, use as a store of wealth, and potential to enable value transfers outside centralized financial infrastructures.
Bitcoin’s fixed total supply of 21 million coins stands out, particularly as the expansion of government-issued currencies persists. Proponents of Bitcoin may increasingly look to the asset as a form of value storage or as a strategic hedge against inflationary pressures.
Elon Musk contends that as technology advances, “the importance of money decreases if you have an abundance, because the reason you need money is to get access to goods and services, and if those goods and services are available, money is less important.”
Nevertheless, Musk’s forecast is still highly speculative for now. Attaining a future marked by abundance by 2036 would necessitate significant breakthroughs in robotics, AI, energy production, and manufacturing capacities.
Mini dictionary: Zanny Minton Beddoes is the editor-in-chief of The Economist, a leading global business and current affairs publication based in London. She has held this position since 2015, overseeing editorial content and contributing to economic reporting.
