Elon Musk, in an interaction with podcaster Joe Rogan, argued that Bitcoin resolves the issue of inflation.
Musk alleged that a portion of the US population expects the economy to act as a non-stop gift basket that will continuously offer groceries and other essentials even when the country is in a lockdown state.
Referring to stimulus money given by the US government to its citizens, Musk said “This notion though, that you can just sort of send checks out to everybody and things will be fine, is not true.”
To set things in order and support the economy, the US government chose to print $2 trillion cash and disburse it as stimulus.
Musk opined that printing money without manufacturing goods or offering services will not work. He said “If you don’t make stuff, there’s no stuff. You can’t just legislate money and solve these things.”
Bitcoin, structured to have a maximum supply of 21 million, will never face inflation. The only possible inflation in Bitcoin ecosystem will be in the form of mining reward, which increases the floating supply. Unless a consensus led hard fork is carried out on Bitcoin’s blockchain, the cap of 21 million BTC can never be increased.
Adding to what @elonmusk told @joerogan: “We can’t just print money and send it out while everyone shelters at home not working. If you don’t make stuff, there’s no stuff.” Once foreign demand for dollars crashes, and we can’t import the stuff others make, there’s also no stuff.
— Peter Schiff (@PeterSchiff) May 7, 2020
Musk and Rogan did not speak about Bitcoin during their conversation which extended for over an hour. Nevertheless, as per the chat transcript, Gold bug Peter Schiff also opined through a tweet on Musk’s statement.
“Once foreign demand for dollars crashes, and we can’t import the stuff others make, there’s also no stuff,” Schiff mentioned, but did not Bitcoin as a likely solution.
Schiff is a well-known cynic of Bitcoin. Musk, notably, owns only 0.25 BTC as per latest info.
That said, I still only own 0.25 BTC, which a friend sent me several years ago. Don’t have any crypto holdings.
— Elon Musk (@elonmusk) February 21, 2019
