Elon Musk pivots from crypto to AI – What does this mean for the DeFi industry

Elon Musk

TL;DR Breakdown

  • A long-time supporter of the crypto industry, Elon Musk, has pivoted support to Artificial intelligence (AI)
  • The Twitter CEO previously talked about the necessity of regulations on AI
  • Crypto investors linger on the thought of what would happen to the crypto industry if Elon Musk pulled his support

In a surprising turn of events, tech billionaire Elon Musk recently announced that he prefers artificial intelligence over cryptocurrency. The announcement, which came during a Twitter conversation with followers, has left many of his fans and investors scratching their heads.

Elon Musk, who has been a vocal proponent of cryptocurrencies like Bitcoin and Dogecoin, has often used his social media platform to promote their adoption. However, in a recent tweet, Musk stated that his interest has switched from cryptocurrencies to artificial intelligence (AI).

Elon Musk takes a drastic Fintech switch

Musk asserted on his official Twitter account on March 3rd, “I used to be in crypto, but now I got interested in AI.” Several users responded to Musk’s post, with most showing concern. Musk admitted earlier this week that he was experiencing “a bit” of AI existential anxiety.

Elon Musk’s recent comments have come as a surprise to many in the crypto community, who have seen him as a champion of digital currencies. However, the entrepreneur has previously expressed concerns about the environmental impact of cryptocurrencies, particularly Bitcoin, which he said in May 2021 was “bad for the environment.”

In recent days, Musk, after a detailed discussion on AI, shared his concerns and anxieties about its “great danger”, pointing out that “AI stresses me [him] out”. According to Elon Musk, the advancement of AI is a major source of concern because it is one of the biggest risks to the future of civilization, implying the need for regulation:

I think we need to regulate AI safety, frankly. It is, I think, actually a bigger risk to society than cars or planes, or medicine.

Elon Musk

Furthermore, he stated that while AI regulation may result in its “slow” implementation, it will have a more positive impact in reducing AI risks. Furthermore, Musk expressed his thoughts on “how advanced AI has become,” claiming that it is accessible to the majority of people because it lacks a user interface.

Tesla’s ambitious artificial intelligence efforts were highlighted in Musk’s “Master Plan 3,” the third in a series of papers on how to expand Tesla and convert the world to clean energy.

The crypto market reacts to Musk’s switch

Last month, the tech billionaire warned that AI is one of the greatest threats to humanity’s future. Musk claimed in July 2020 that AI would be “vastly smarter” than humans and surpass us by 2025.

Meanwhile, in June of last year, the Twitter CEO stated that he would continue supporting and buying Dogecoin, a cryptocurrency he has advocated for years. Musk, dubbed the ‘Dogefather,’ had long been a vocal supporter of Dogecoin and had previously tweeted several times to help boost the digital token’s price.

In response to Musk’s tweets, the Twitter community expressed various concerns and reservations about the rapid growth of AI. Blockchain architect Jagdeep Sidhu spoke with Musk about how AI could be made more responsible, efficient, and fast.

Several users responded to Musk’s post with their thoughts. “Says every crypto bro out there pitching NFTs no one wants,” 

Another asked, “Why not both?” In addition, another inquired of Musk whether he still supported cryptocurrency.

However, others took the opportunity to solidify their commitment to the crypto industry. 

Elon Musk is and remains to be one of the greatest entrepreneurial minds on the planet. One Twitter user took the opportunity to offer Musk a business opportunity. Will he take it?

What does this mean for the crypto industry?

Elon Musk has been a prominent figure in the cryptocurrency industry, particularly with his tweets and comments about Bitcoin and Dogecoin. His support or criticism of a particular cryptocurrency has been known to cause significant price fluctuations in the market.

If Elon Musk were to pull his support from the crypto industry, it could potentially have a negative impact on the market in the short term. If he were to sell a significant amount of Bitcoin or Dogecoin, for example, it could cause the price of these cryptocurrencies to drop.

However, it is important to note that the crypto industry is much larger than any one individual or company, and it is driven by a multitude of factors beyond just Elon Musk’s influence. While his support has certainly brought attention to the industry, the underlying technology and the potential for decentralized finance and other applications will likely continue to drive the growth and adoption of cryptocurrencies.

Furthermore, there are other influential figures in the industry, such as institutional investors and other high-profile individuals, who are also driving the growth of cryptocurrencies. As such, while Elon Musk’s involvement is significant, it is not the sole determinant of the industry’s success.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Florence Muchai

Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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