Tesla CEO Elon Musk has suggested that historical errors characterize the current money system; an aspect cryptocurrencies are attempting to reduce.
While appearing on the Lex Fridman podcast, Musk stated that errors result from the government’s ability to interfere with the money supply through excessive printing, which dilutes the currency’s value.
Musk, a crypto proponent, faulted the centralization aspect of money, noting that the government is likely to abuse its rights to determine the money supply. In this line, he insinuated that the decentralized nature of digital currencies might offer a solution.
“I think the cryptocurrency thing is an interesting approach to reducing the error in the database that is called money that is contributed by governments diluting the money supply<…>The government effectively has editing privileges on the money database and they use those editing privileges to make more money whenever they want. This increases the error in the database that is money,” said Musk.
Furthermore, Musk believes that the current money systems run on old technology that needs an overhaul and cryptocurrencies to offer the perfect alternative to fixing the system.