Elon Musk has never shied away from expressing his opinions on the ever-evolving landscape of cryptocurrencies. While his fondness for digital currencies, notably Dogecoin, is widely known, his stance on non-fungible tokens (NFTs) appears to be less enthusiastic, as highlighted in a recent interview on the Joe Rogan podcast.
NFTs, or non-fungible tokens, represent unique digital assets that are verified using blockchain technology, providing proof of ownership and authenticity. However, Musk’s reservations seem to stem from the implementation and technical aspects surrounding NFTs.
The Quirks Of NFTs: Elon Musk Makes Noise
In the podcast released on Oct. 31, Musk remarked, “The funny thing is the NFT is not even on the blockchain — it’s just a URL to the JPEG.”
His statement reflected a key concern regarding the lack of direct integration of the digital asset within the blockchain infrastructure, potentially leaving it vulnerable to external dependencies.
During the conversation, Musk emphasized the need for NFT projects to incorporate the encoding of the actual digital asset, such as an image, directly onto the blockchain. This approach, according to Musk, would safeguard the digital asset from potential risks associated with the host platform’s viability.
“You should at least encode the JPEG in the blockchain,” he added. “If the company housing the image goes out of business, you don’t have the image anymore.”
Musk’s critique of NFTs was not an isolated incident. Back in December 2021, he resorted to social media to mock NFTs, depicting them as a sign of “mental illness” through a meme portraying a patient lying on a therapist’s couch.
Despite this earlier criticism, Musk’s recent acknowledgment of his admiration for the work of renowned NFT artist Beeple presented a nuanced perspective. He referred to Beeple as “pretty edgy,” indicating an appreciation for the artist’s distinctive and boundary-pushing creations within the NFT realm.
— Elon Musk (@elonmusk) December 16, 2021
Thanks for shoutout @elonmusk
sorry for the night terrors!! 😅 #gigachad pic.twitter.com/TGe2inLTKf— beeple (@beeple) October 31, 2023
Furthermore, Musk’s reservations were not fueled by a complete aversion to the concept of NFTs, but rather by his intricate understanding of the underlying technology and its potential implications.
Bitcoin slightly above the $35K level today. Chart: TradingView.com
A Call For Secure NFTs
During the conversation with Rogan, both Musk and the podcast host delved into the prevalent issue of fraudulent activities and scams within the cryptocurrency and NFT sectors. Rogan, while acknowledging the prevalence of scams, highlighted Beeple’s authenticity, emphasizing the legitimacy of his contributions to the NFT space.
This distinction further underscored Musk’s recognition of the potential within the NFT sphere, albeit with the caveat of stringent technical standards to ensure durability and trustworthiness.
In essence, the recent critique of Elon Musk of NFTs highlighted the importance of integrating robust technical mechanisms within the realm of digital assets to ensure their longevity and security.
Despite his reservations, Musk’s appreciation for the artistic potential within the NFT space, particularly exemplified through Beeple’s work, exemplified a nuanced perspective that sought to balance innovation with structural integrity.
Featured image from Tsvetoslav Hristov/Unsplash