Bitcoin won't replace cash - Elon Musk joins the chorus

Elon Musk joins the camp of crypto critics who do not believe in digital money dominance.
BTC/USD resumed the decline and dives below $8,300.

Tanya Abrosimova Independent Analyst

The head of Tesla and SpaceX, Elon Musk discussed the potential competition between fiat and digital currencies in podcast Third Row Tesla.

He emphasized that he is neither proponent nor denier of digital currencies. However, he also admitted that he found Bitcoin's white paper rather well-thought.

According to Mask, at this stage, cryptocurrencies now serve as a bridge between illegal operations and the world of legal money. They are often used to whitewash proceeds obtained in an illegal way.

“This sort of gets the crypto people angry, but there are transactions that are not within the balance of the law. And there are, obviously, many laws in different countries. And, normally, cash is used for these transactions. But, in order for illegal transactions to occur, cash must also be used for legal transactions. You need an illegal to legal bridge. That’s where crypto comes in.”

Digital currencies found their niche in the global economy as cash usage has become increasingly difficult; however, they can hardly replace cash and be used as a primary means of payment, Musk believes.

“Cash, these days, is used much rarer. It’s increasingly difficult to use cash. Some places, you can’t use cash at all. So, there’s a forcing function for transactions that are illegal, quasi-legal, and in some cases legal. But it’s got to have both legal and illegal…

What's going on with Bitcoin

BTC/USD is changing hands at $8,275. The first digital currency resumed the decline after a short period of consolidation during early Asian hours. BTC/USD has lost 1.3% of its value since the beginning of the day amid increasingly bearish trend.

The vital support is created by SMA100 daily on approach to psychological; $8,000. This area is also reinforced by the upper boundary of the broken downside wedge. Most likely, this support will slow down the bears and serve as a jumping-off ground for a recovery. However, once it is out of the way, the sell-off is likely to gain traction with the next focus on $7,650 (SMA50 daily).

On the upside, we will need to see a sustainable move above $8,450 for the upside to gain traction.