Initially, Elon Musk, CEO of Tesla and founder of SpaceX, was hesitant about the concept of using Bitcoin (BTC) as currency on Mars.
However, recent developments suggest that he may have changed his stance, albeit with some reservations. {showAds}
In a recent X Spaces titled 'ARK 21Shares Bitcoin ETF (ARKB) Approved,' Cathie Wood, the CEO of ARK Invest, discussed with Musk about the possibility of using Bitcoin as a currency on Mars. However, Musk was initially hesitant due to the lengthy transaction settlement time.
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Using a form of cryptocurrency on Mars would be logical, however Bitcoin would not be a suitable option due to its lengthy reconciliation process.
The recent developments in Musk's plan to colonize Mars by 2050, as stated in his long-standing ambition documented on Wikipedia, emphasize the need for humanity to become a multi-planetary species in order to ensure survival.
On Twitter, Sam Callahan (@samcallah) asks Elon what currency he would use on Mars. Elon responds with a picture:
Elon answers what money he would use on Mars: pic.twitter.com/VJQeIM0qqJ
— Sam Callahan (@samcallah) January 11, 2024
After engaging in a solo verbal brainstorming session, Musk ultimately determined that the idea might indeed be achievable, taking into account the fact that Earth is just eight light minutes away from the sun, whereas Mars is approximately 12 light minutes away. However, there are still potential challenges that will need to be overcome.
According to his statement, it may be possible to utilize Bitcoin to a certain extent, however, it could prove challenging to heavily rely on it on Mars. He also mentioned the potential necessity of a decentralized system on the planet.
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It may take approximately twenty light minutes to reach Mars, making it a challenging feat. In order to successfully navigate Mars, there must be a specific system in place on the planet.
Afterwards, Musk and Bitcoin core developer Matt Corallo concurred that the issue of Bitcoin's slow transaction speed could be addressed by implementing a localized Lightning Network.
The process of securing transactions on Bitcoin takes approximately one hour due to its blockchain system which organizes them into blocks that are 10 minutes long. This requires the confirmation of six blocks before the transaction can be completed.
Thanks to the efforts of SpaceX and its CEO Elon Musk, we are getting closer to Mars every day. Eva McMillan shared this exciting development on Twitter with a heart emoji and a picture, dated January 10, 2024.
On the other hand, Adam Back, the CEO of Blockstream, expressed a more positive outlook on the concept, whether or not a localised Lightning Network is implemented in the current version of Bitcoin.
In response to the Spaces thread, he commented on Twitter saying, "Having 10-minute blocks, a 12-22 light minute distance is not an issue."
According to Glassnode's data in April 2023, it was revealed that Bitcoin's Lightning Network offers a much more cost-effective option for payments compared to traditional legacy systems.
Based on data from Glassnode, the expense of transmitting value through the Lightning Network is only 0.0029%, making it roughly 1,000 times more cost-effective than traditional payment processors such as Mastercard or Visa. This information was reported by Cointelegraph in an article about the efficiency of the Bitcoin Lightning Network compared to other payment methods.
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There is currently speculation surrounding Musk's potential inclusion of cryptocurrencies on X, as he intends to turn it into a versatile "everything app."
In January 2023, two individuals who are knowledgeable about X's plans stated that the payments feature has the potential to support cryptocurrencies if the need arises.
In response to a user on X, Musk stated on August 5 that he has no intention of launching a crypto token on the platform, as reported by Cointelegraph.
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