Elon Musk Considers Bitcoin for Martian Economy

Billionaire Elon Musk has entertained the idea of using cryptocurrencies, including Bitcoin, as a monetary unit on Mars. 

Elon answers what money he would use on Mars: pic.twitter.com/VJQeIM0qqJ

— Sam Callahan (@samcallah) January 11, 2024

The businessman made this statement at a conference focused on the approval of a spot Bitcoin ETF by ARK Invest.

In response to a question about what currency would be used on Mars, Musk initially expressed doubts about the functionality of the first cryptocurrency for such use. He cited the significant time required for transaction confirmations as a limiting factor.

However, after discussions, the billionaire concluded that it is quite feasible: 

“It might be possible to use Bitcoin to some extent, but it would be difficult to use it in large quantities on Mars. Mars is about 20 light minutes from the Sun, so localizing such things there is not easy.”

Subsequently, Musk agreed with Bitcoin Core developer Matt Corallo that the low transaction speed could be addressed with a localized Bitcoin micropayment network, the Lightning Network.

According to the entrepreneur, some stakeholders in the crypto industry are discussing steps to deliver cryptocurrencies to Mars, but technological challenges must be resolved first. 

Meanwhile, Blockstream CEO Adam Back described the distance to the “red planet” as the least significant obstacle. He also noted that Bitcoin’s current throughput is quite suitable for Mars. 

Correct answer: #bitcoin. 12-22 light minutes is no problem with 10minute blocks. Plus think bigger: kardashev type 2 requires a Dyson sphere around the sun and put all the miners there too. Problem solved.

— Adam Back (@adam3us) January 11, 2024

“Think bigger: Kardashev type II requires a Dyson sphere around the Sun, and put all the miners there too. Problem solved,” he stated. 

Previously, BitMEX and Astrobotic organized a project to send a hardware wallet with 1 BTC to the Moon. However, the mission faced potential failure due to technical issues. 

Since 2021, Elon Musk’s SpaceX has been preparing to launch the Doge-1 satellite, paid for with meme tokens. However, the initiative has yet to be realized.