Elon Musk advocates using bitcoin on Mars

Elon Musk has spoken about the possibility of using cryptocurrency on Mars. Initially, Musk was skeptical about this idea because of the length of time it takes to settle bitcoin transactions. However, after further discussion of the topic, he changed his mind.

During the discussion, which took place on the social networking platform X (Twitter), Musk concluded that the use of bitcoin in space is quite possible. He noted that the Earth is located just eight light minutes from the Sun, while the distance to Mars is 12 light minutes. These factors can play a key role in realizing the idea of using cryptocurrency on the Red Planet.

«You may be able to use bitcoin on Mars, although it will be difficult,» Musk shared his opinion.

Musk’s further reflections led to an agreement with bitcoin core developer Matt Corallo that slow bitcoin transactions could be accelerated by using the localized Lightning Network. Currently, it takes about an hour to process bitcoin transactions, as the blockchain generates 10-minute blocks and requires six blocks to be confirmed to complete a transaction.

Elon Musk also noted that he used to think about the nature of money, but now he sees it only as a «database for resource allocation.» According to him, fiat currencies are suitable for this role if the state does not abuse them.

«Just think of money as if it were an information system. You also want to minimize noise, minimize delays, minimize losses. And inflation would add noise to the system,» Musk advises.

It is worth noting that Tesla, headed by Musk, is the third largest corporate bitcoin holder among public companies, owning 9,720 BTC. At the same time, Musk has not sold his digital currency stocks for about three years.