Last month, Elon Musk and Jack Dorsey announced on Twitter that they would be leading a panel at “The B Word” to talk Bitcoin. Today’s the day, and the talk is titled “Bitcoin As A Tool For Economic Empowerment”. It’s happening live on the The B Word’s website, and you can follow our liveblog here.
Featuring Cathie Wood, Jack Dorsey, and Elon Musk, Steve Lee will moderate this live panel discussion where nothing is off limits!
Feel free to follow our liveblog if you can’t take the time to watch the video or would prefer to follow in text form.
The B Word liveblog w/ Elon Musk
— Steve Lee has introduced the panel’s guests… Cathie Wood from ARK Invest, Jack Dorsey, and Elon Musk.
— A tiny bit of minutiae: Elon is wearing an “evolution of money” t-shirt with Bitcoin being the final evolution. Cathie talked what influenced their views on bitcoin and spurred ARK’s research.
— Elon is talking X.com and PayPal… “I’ve been thinking about money for a long time.”
— “There’s definitely room for something that is better from an information theory standpoint.”… speaking of Bitcoin in comparison to ancient systems like ACH. “It’s fundamentally an information system, so it makes sense to support something that supports the quality of information with which we conduct the economy.”
— “Internally I’m a supporter of Bitcoin and cryptocurrency in general… on balance I support Bitcoin…”
— “I do own Bitcoin, Tesla owns Bitcoin, and SpaceX owns bitcoin.” I believe this is the first time that Elon has publicly confirmed that SpaceX owns Bitcoin.
— Jack is talking about the similarities between bitcoin and the internet… now extrapolating how “Bitcoin changes everything”.
— Steve asked Cathie on her thoughts on the capped supply of Bitcoin… “this might be the first rules-based monetary system that can’t later be changed.” Cathie says the role that it’s playing is “a store of value” role.
— “If I happen to be in Ghana and my family is in Nigeria, sending that money back can take 30% right off the top. Bitcoin solves these problems without having to go through any intermediaries,” Jack says. “Having sound money that is separate from the state is the idea.
— Steve asked if Bitcoin can be a peer to peer cash system. Elon is saying it’s slow at the base layer but that there is a second layer that could be added. “With a second layer, this is possible depending on how that second layer is implemented.” “There may be some merit to something that might seem silly like Dogecoin…”
— “I might pump, but I don’t dump. I don’t believe in getting the price up and then dumping. I think there is some merit to seeing how far you could take a single layer network. I think you could probably take that further than people realize.”
— Steve is pushing Elon on the losing security and decentralization of Bitcoin with moving to increasing block size, but Elon thinks the argument is silly.
— Elon says he “ran by the team” the idea of putting a Bitcoin node on Starlink.
— Elon is asked if he sees any more gaps in Bitcoin that causes him to be drawn to Dogecoin. He says he likes that the community is irreverent and doesn’t take itself too seriously. He’s repeating his trope that the most entertaining outcome is the most likely one.
— Jack is touching on Elon’s comments… says he was attracted to Bitcoin for its irreverent as well. Jack thinks “the resilience is there” to resist the entertaining potential outcome of Doge, but he says it’s “important to have fun along the way, because it will make it more enjoyable and more attractive to more people to use it.”
— Now moving on to Bitcoin and energy… this should be good. Steve says that Elon has said that Tesla will resume payments in Bitcoin if the renewable energy use is on a positive trend.
— Elon says that “there appears to be a positive trend”. There was a massive run up in bitcoin price and the energy used to mine bitcoin in response to Tesla’s announcement of its investment etc. He said it was too sketchy, too quickly. The run up in energy usage of Bitcoin seemed too fast to be driven by renewables, so he felt the need to do due diligence.
— “These actions negatively affected me financially… it does look like Bitcoin is shifting a lot more toward renewables, and that many of the coal-powered plants that were being used have been shut down in China.”
— “We want to do a little more due diligence that the renewable usage is at or above 50%, the most likely answer is that Tesla will resume accepting Bitcoin.”
— Cathie is asking Elon’s perspective/opinion on the ARK Invest/Square paper on the benefits of Bitcoin mining for using overage of solar and wind power to make them more economical.
— “I think a combination of solar and wind and stationary storage will get you the base load so you can run mining 24/7.”
— Jack is touching on other energy innovation, and Bitcoin capturing all the unused/wasted energy. Being able to convert that energy into a secure/sound money system for the planet seems like a worthy trade-off.
— “This is the reason I’ve put so much of my life energy into Tesla… we do solar… most of the gigawatt installations have been for load-leveling the grid… Tesla is doing a lot to enable renewables, especially wind and solar… a limiting factor for us is cell production… at Tesla we really do aspire to be the good guys, to be a company people can believe in…” Wow that was a thought salad.
— “I do think that long term renewable energy will be the cheapest form of energy, it just won’t happen over night,” Elon says. “As long as there’s a concerted effort to support green energy in the mining community, this is something Tesla can support.”
— Cathie is now talking ESG. “I do believe Bitcoin will be much more environmentally friendly than traditional gold mining and the traditional finance sector.”
— Jack says Square is making a hardware wallet and will probably do “a lot more in hardware.”
— “If you own crypto in an exchange and that exchange doesn’t give you your private keys, it’s not clear that you own anything,” Elon says. “To have decentralized finance, you have to own your private keys. If someone else has your private keys, they own it too.”
— Steve is now asking about the Bitcoin community’s immune response to institutions and powerful people co-opting Bitcoin. Asking how their institutions think about that.
— Elon asked about Jack accepting payments from advertisers on Twitter. Jack said that he’s more focused on how to create economic incentives in Twitter itself without having to have advertisers.
— “Increase the power of the individual over the government… If you hate corporations, you should really hate government. It’s the largest corporation with a monopoly on violence,” Elon says.
— Cathie is giving advice on putting Bitcoin on company balance sheets. “Bitcoin is being treated as an intangible asset. If the asset goes up in price, it can’t be marked up on their books, and if it goes down, it must be marked down. There is some asymmetry there.”
— “I would encourage businesses to think about the potential explosive growth. It will also serve as a hedge against inflation and deflation is going to be a real thing… good deflation because of innovation, and bad deflation because companies haven’t invested enough in innovation and they’re going to be stuck trying to service debt, Cathie says.
— “Tesla’s bank balances in Europe have negative interest rates,” Elon says. “It is quite annoying to see your bank balance drop in real time in Europe. This is insane. I’m paying the bank to keep my money,” Elon says.
— Elon says he believes in more power to the individual. Jack says his hope is peace for humanity. That’s pretty much it.
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