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Elon Musk, founder and CEO of Tesla and SpaceX, just lately reignited his criticism of fiat currencies by calling them an outright “rip-off” on Twitter. Responding to a tweet that requested about normalized scams, Musk merely replied “Fiat foreign money” to precise his view that government-backed cash has develop into unreliable.
Fiat foreign money
— Elon Musk (@elonmusk) October 1, 2023
This isn’t the primary time Musk has voiced skepticism about fiat. In 2021 tweets, he stated “The true battle is between fiat & crypto. On steadiness, I assist the latter.” At a Bitcoin-focused convention that 12 months, Musk additionally described himself as “a supporter of Bitcoin and the concept of cryptocurrency usually.”
Musk’s personal social media platform X (previously Twitter) plans to allow cash transfers between customers in fiat foreign money first earlier than doubtlessly increasing into crypto transactions afterward, in keeping with a Monetary Occasions report.
In contrast to fiat, Bitcoin has a restricted provide of 21 million cash, is decentralized, and its creation is algorithmic moderately than managed by any central authority. Advocates argue this offers independence from authorities overreach and inflationary insurance policies.
Against this, central banks can print limitless quantities of fiat cash, steadily depreciating its worth over time. Unchecked cash printing can result in hyperinflation, like in Zimbabwe the place inflation hit 79 billion p.c in 2008 after years of accelerating fiat provide. Or the Turkish lira which reported 61.5% inflation annual inflation yesterday.
To crypto proponents, the power of governments to grab fiat belongings, as Cyprus did to financial institution deposit holders in 2013 to keep away from a disaster, is one other threat not current with Bitcoin.