Elon Musk Swings From Crypto To AI – What This Means For The DeFi Industry – Cryptopolitan

by Arthur · March 4, 2023

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

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

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Elon Musk makes a drastic Fintech switch

Musk claimed on his official Twitter account on March 3: “I used to be into crypto, but now I got into AI.” Several users responded to Musk’s post, with most expressing concern. Musk admitted earlier this week that he was experiencing “a bit” of AI existential angst.

“I used to be in crypto, but now I got interested in AI”

— Elon Musk (@elonmusk) March 3, 2023

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 concern about the environmental impact of cryptocurrencies, particularly Bitcoin, which he said in May 2021 was “bad for the environment.”

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

I think we need to regulate AI security, frankly. It is, I think, actually a greater risk to society than cars or airplanes, or medicine.

Elon Musk

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

BREAKING: The greatest technical minds of our time @elonmusk has just spoken eloquently and eruditely about the need for, and possible approaches to, regulation of AI. As quoted in Reuters: “We need some kind of, like, regulatory authority or something” https://t.co/soI6dPkvpt

— Noah Giansiracusa (@ProfNoahGian) March 2, 2023

Tesla’s ambitious AI efforts were highlighted in Musk’s “Master Plan 3,” the third in a series of articles 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 biggest threats to the future of humanity. Musk claimed in July 2020 that AI would be “much smarter” than humans and surpass us by 2025.

Meanwhile, last June, the Twitter boss stated that he would continue to support and buy Dogecoin, a cryptocurrency he has advocated for years. Dubbed the “Dogefather,” Musk had long been a vocal supporter of Dogecoin and had previously tweeted several times to help boost the price of the digital token.

In response to Musk’s tweets, the Twitter community expressed various concerns and reservations about the rapid growth of AI. Blockchain architect Jdeep Sidhu spoke with Musk about how AI can 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 nobody wants,”

Says every crypto bro out there pitching NFTs nobody wants.

— Jeremy Ryan Slate (@JeremyRyanSlate) March 3, 2023

Another asked: “Why not both?” Additionally, another asked Musk if he still supported cryptocurrency.

You are still in crypto

— Lord TJ (@LordTJCrypto) March 3, 2023

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

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

I am interested in crypto, AI, the metaverse and robots. However, learning them all seems like a heavy lift. Since you seem to be the person who produces at least 60% of the cool stuff in the world, can you make a universal coding language that works for all of them?

— John Hawkins (@johnhawkinsrwn) March 3, 2023

What does this mean for the crypto industry?

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

If Elon Musk were to withdraw 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.

I used to be in crypto and now I need a job

— Laura Wolff (@iamlauwolff) March 3, 2023

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

Furthermore, there are other influential people 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 only determining factor in the industry’s success.