Against the backdrop of approval of Bitcoin ETFs in the US, a billionaire joined the conversation in Space on X with ARK Invest CEO Cathie Wood and discussed the possibility of using cryptocurrency on Mars.
At first, he perceived the idea of using bitcoin on the planet that he plans to colonize by 2050 somewhat critically - due to the time required for transaction calculations. Mars is approximately 12 light minutes away from the Sun (Earth is 8), which makes financial operations in real time, according to Musk, difficult.
"It makes sense to use cryptocurrency on Mars, but not bitcoin - the transaction time is too long."
However, during the discussion, Musk somewhat softened his position:
"You may be able to use bitcoin to some extent, but in large amounts on Mars it would be difficult," he said, later acknowledging that the slow transaction speed of bitcoin could eventually be solved with the help of a localized Lightning Network.
Lightning Network is a second-layer payment protocol built on the Bitcoin blockchain and designed for faster and cheaper transactions. Currently, the Bitcoin blockchain processes transactions in 10-minute blocks, requiring six confirmations before completion.
In April 2023, Glassnode data showed that the use of Bitcoin Lightning Network accounted for 0.0029%, which is approximately 1000 times cheaper than Mastercard or Visa payment processors.
After Musk announced the transformation of Twitter into X, which will become "an app for everything" - and particularly, for payment capabilities - there have been ongoing speculations about whether he will support cryptocurrency. However, on August 5, 2023, Musk responded to a user on X that he will never launch a cryptocurrency token on the platform.
Source: Cointelegraph
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