Initially hesitant about using Bitcoin as a currency on Mars, Tesla CEO and SpaceX founder Elon Musk may have had a change of heart, albeit cautiously.
In a Space on X (formerly Twitter) titled “ARK 21Shares Bitcoin ETF (ARKB) Approved,” featuring a discussion with ARK Invest CEO Cathie Wood, Musk initially dismissed the idea of using Bitcoin on Mars due to the lengthy transaction settlement times.
He stated, “It would make sense to use some kind of cryptocurrency on Mars; you couldn’t use Bitcoin because the reconciliation is too long.” This discussion aligns with Musk’s ongoing vision of establishing a human colony on Mars by 2050, driven by the belief that humanity must become a multiplanetary species for survival.
However, after some impromptu brainstorming, Musk suggested that using Bitcoin might be feasible, given that Earth is only eight light minutes away from the sun, while Mars is approximately 12 light minutes away. Still, he acknowledged that challenges would persist. Musk mentioned the potential necessity for a localized network on Mars, saying, “Perhaps you can use Bitcoin to some degree, but it would be difficult to use it a lot on Mars.”
Furthermore, Musk agreed with Bitcoin core developer Matt Corallo that Bitcoin’s slow transaction speed could be addressed through a localized Lightning Network. Currently, Bitcoin transactions can take up to an hour to secure due to the 10-minute block assembly on its blockchain, requiring confirmation of six blocks for finalization.
Although Blockstream CEO Adam Back was more optimistic about the idea, Musk suggested that the concept could work with or without a localized Lightning Network in Bitcoin’s current form, stating, “12-22 light minutes is no problem with 10-minute blocks.” In April 2023, data from Glassnode indicated that the Bitcoin Lightning Network is significantly more cost-effective compared to other legacy payment methods, with a cost of sending value across the Lightning Network being approximately 1,000 times cheaper than Mastercard or Visa payment processors.
Meanwhile, there has been speculation regarding whether Musk will incorporate the option of using cryptocurrencies on X, as he intends to turn it into an “everything app.” Reports in January 2023 suggested that X’s payment feature could support cryptocurrencies if the opportunity arises. However, on August 5, 2023, Musk responded to a user on X, stating that he “never will” launch a cryptocurrency token on the platform.
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