World’s richest man and Tesla CEO Elon Musk said today that he is considering using Bitcoin on Mars, but there are still challenges to be solved. At the same time, he expressed openness to using Bitcoin on the X platform, but without much consideration.
(Background:
Historic Moment: US SEC Approves 11 Bitcoin ETFs! Full SEC Announcement and FAQs)
Table of Contents
Considering the use of Bitcoin on Mars
Improvement through the Lightning Network
Using Bitcoin on the X platform?
The cryptocurrency market witnessed a historic moment this morning when the US Securities and Exchange Commission (SEC) approved 11 Bitcoin ETF applications, including BlackRock, Ark Investment/21Shares, and Grayscale. As the application by Ark Investment was approved, Tesla CEO Elon Musk also participated in a Twitter Space event hosted by Ark Investment founder Cathie Wood.
According to Cointelegraph, Musk has been committed to establishing a colony on Mars by 2050, believing that humanity must evolve into a multi-planetary species to survive. When Cathie Wood asked if he plans to use Bitcoin as a currency on Mars, Musk initially stated that using Bitcoin on Mars for settlement transactions would require a significant amount of time. However, Musk then reconsidered and mentioned that since the distance between Earth and the Sun is only 8 light-minutes, while Mars is approximately 12 light-minutes away from Earth, using Bitcoin on Mars could be feasible. However, it may still face obstacles, and a local network may be needed on Mars. A light-minute refers to the distance light travels in a vacuum in one minute, which is equivalent to 17,987,547.48 kilometers.
Musk subsequently agreed with Bitcoin core developer Matt Corallo’s view that the slow transaction speed of Bitcoin can be addressed through localized Lightning Networks. Currently, Bitcoin transactions require up to an hour to ensure security because the block time for Bitcoin is 10 minutes, and a transaction typically needs to go through six blocks to be finally confirmed.
Regardless of whether Bitcoin has a localized Lightning Network on Mars or not, Blockstream CEO Adam Back remains optimistic about the idea of using Bitcoin on Mars. He believes that the distance of 12-22 light-minutes poses no problem for a 10-minute block time.
Furthermore, when Cathie Wood asked Musk if he would consider incorporating Bitcoin into the infrastructure of the X platform, Musk expressed an open attitude towards using Bitcoin on the X platform but didn’t give it much consideration. In fact, in August of last year, Musk stated that the X platform would never launch a cryptocurrency. However, in December, Musk mentioned that he wouldn’t spend much time thinking about cryptocurrencies. He also hinted that the X platform would obtain a payment license across the US by mid-2024, with the goal of launching payment functionality by the end of 2024.
Given Musk’s ever-changing nature, it cannot be ruled out that he would still pursue the idea if regulatory approval is granted.