When it comes to cryptocurrencies, one of the most influential figures, Elon Musk, started a new debate with his statement yesterday. In a space event that included Cathie Wood, Musk commented on the use of cryptocurrency on Mars.
The Dream of Cryptocurrency on Mars
During a conversation on January 10th in a room titled “ARK 21Shares Bitcoin ETF (ARKB) Approved,” with ARK Invest CEO Cathie Wood also present, Elon Musk shared his thoughts on the possibility of using Bitcoin (BTC) as a currency on Mars and expressed his skepticism.
He pointed out the potential difficulties due to the transaction times that could occur.
Musk’s statement was as follows:
It would make sense to use a cryptocurrency on Mars; you can’t use Bitcoin because the consensus takes too long.
At the heart of the ensuing debate are Musk’s plans to establish a habitable colony on Mars by 2050. Musk’s vision includes enabling human travel and habitation between multiple planets.
Is Bitcoin Viable?
While these discussions were taking place, Musk later changed his perspective and concluded that it could be possible. Acknowledging potential barriers, Musk’s argument was based on the distance between Mars and Earth.
He came to this conclusion:
You might be able to use Bitcoin to some extent, but it will be hard to use it extensively on Mars.
Space and Cryptocurrency Solutions
Musk continued his explanation later on. He suggested that an agreement with Bitcoin core developer Matt Corallo could facilitate the use of BTC on Mars by addressing its slow transaction speed through a Lightning Network.
Since the blockchain is assembled in 10-minute blocks, securing Bitcoin transactions takes about an hour. For a transaction to be finalized, six blocks need to be confirmed.
It is wondered whether this is just the first step in making Bitcoin the first digital asset likely to be used on multiple planets.
Considering the situation, the approval of spot-Bitcoin ETFs is prompting many scientists and CEOs closely involved with cryptocurrency to think about BTC’s potential applications.
