Initially hesitant about the idea of using Bitcoin on Mars, Elon Musk, the visionary behind Tesla and SpaceX, eventually warmed up to the concept. However, despite shifts in Elon Musk Bitcoin stance, the billionaire remains mindful of the challenges associated with employing BTC as a payment method on the red planet.
In a statement given during a Space session on X, Musk initially shot down the idea of using Bitcoin as a currency on Mars, which he aims to colonize by 2050. He stated that settling transactions on the BTC network takes time, and therefore, it is not viable to use it on another planet.
“It would make sense to use some kind of cryptocurrency on Mars; you couldn’t use Bitcoin because the reconciliation is too long,” Musk said.
Elon Musk Bitcoin Sentiments
Musk claims that humans need to evolve into a multi-planet species if they are to survive. The billionaire aims to colonize Mars with the development of the Starship launch vehicle. It is important to note that after a verbal brainstorming session on X, Musk concluded that since Earth is around eight light minutes from the sun while Mars is approximately 12 light minutes away, it might be feasible to use Bitcoin.
“Perhaps you can use Bitcoin to some degree, but it would be difficult to use it a lot on Mars,” Musk said while noting that it would need a localized network to form an efficient economy. He stated:
“Mars can be like twenty light minutes away [from Earth]. So, it is not easy, there would have to be a localized thing on Mars.”
Lightning Network as a Solution
Engaging in a discussion with Bitcoin core developer Matt Corallo, Musk highlighted the potential role of a localized Lightning Network in addressing the slow transaction settlement issue on the red planet. He believes that the Lightning Network, being significantly faster and more cost-effective than the traditional Bitcoin network, could pave the way for a viable solution to facilitate transactions on the distant planet.
Nonetheless, the billionaire has been a vocal supporter of Bitcoin, emphasizing in March 2022 that he continues to hold and won’t sell his bitcoin holdings.
On the other hand, several community members share optimism about the potential use of Bitcoin on Mars. Adam Back, CEO of Blockstream, expressed confidence in Bitcoin’s capability, even without a localized Lightning Network, citing the 10-minute block confirmation mechanism as suitable for the 12–22 light-minute distance to Mars.
Currently, it takes from 10 minutes to one hour to make sure Bitcoin transactions are finalized. Different users require anywhere between 1 to 6 confirmations to make sure a transaction is settled.
Lightning Network is Cheaper
The Bitcoin Lightning Network is a lot cheaper than other legacy payment networks, according to blockchain analytics platform Glassnode. The firm recently said that the cost of sending BTC via Lightning Network is 0.0029%, which is approximately 1,000 times cheaper than American payment giants Mastercard or Visa.
Coinbase’s recent announcement and Binance’s successful integration of Lightning payments underscore the increasing acceptance and recognition of the Lightning Network as a viable solution for faster and cheaper transactions.
Elon Musk’s exploration of using Bitcoin on Mars reveals both the challenges and potential solutions associated with interplanetary transactions. While hurdles exist, the discussion around a localized Lightning Network presents a promising avenue for overcoming these challenges.
