Elon Musk has always been known for his comments on emerging cryptocurrencies and the industry as a whole. His interest in cryptocurrencies, especially Dogecoin, has been widely recognized.
However, his stance on NFTs during an interview on the Joe Rogan podcast created the impression that he is not particularly enthusiastic about this area. Musk’s reservations seem to stem from the fundamental, practical, and technical aspects of NFTs.
The Peculiarities of NFTs: Elon Musk Raises Concerns
During the podcast, Musk made the following statement on October 31:
“The funny thing is, NFT doesn’t even exist on the blockchain – it’s just a URL of a JPEG.”
According to Musk, his statement reflected concerns about the fact that NFTs are not directly integrated into the blockchain infrastructure and their potential vulnerability to external forces.
During the podcast, Musk expressed a clear opinion. He emphasized the need for NFTs to be directly encoded into the blockchain through a coding mechanism. According to Musk, this approach can protect NFTs from potential risks by integrating them into the main platform’s blockchain structure.
“At the very least, you should encode the JPEG on the blockchain. If the company hosting the image goes bankrupt, you will no longer have ownership of the image.”
Musk’s criticism of NFTs is not new. In December 2021, he shared a post mocking NFTs and shared an image depicting a patient lying on a therapist’s couch.
Despite his criticisms, it is a known fact that Musk admires the works of the renowned NFT artist Beeple. However, the source of his concerns stems not only from his disdain for the concept of NFTs but also from his deep understanding of the potential impacts of NFTs.
Elon Musk and His Perspective on NFTs
During the podcast with Rogan, both Musk and Rogan emphasized the issue of fraud in the cryptocurrency and NFT sectors. Rogan highlighted the magnitude of fraud and how Beeple stands out for his authenticity. This discussion revealed that Musk and Rogan acknowledge the potential of the NFT space despite the need for strict technical standards to ensure continuity.
Despite his reservations, Musk’s appreciation for the artistic aspects of Beeple and specifically referencing his work may indicate that he still maintains faith in the potential of NFTs.
