Elon Musk Faces Backlash Over ‘Bitcoin-Style Encryption’ Claim in XChat Launch

Elon Musk’s latest announcement about a new encrypted messaging feature on X has ignited a firestorm, not for the feature itself, but for his baffling description of its underlying tech.

On June 1, the X owner revealed via his official account on the social platform that the new XChat has been “built on Rust with (Bitcoin style) encryption.”

Why Experts Say “Bitcoin-Style Encryption” is Nonsense

Shortly after Musk’s post, a flood of commentary emerged, challenging the accuracy of his terminology. Notably, Bitcoin advocate Udi Wertheimer responded bluntly:

“Bitcoin literally doesn’t have any encryption in it whatsoever.”

The Taproot Wizards co-creator followed up by explaining that BTC uses cryptographic hashing and signing, which are essential for verifying data integrity and ownership, but do not conceal messages, a key function of encryption.

“Encryption is when you have a message and want to keep it secret. Nothing in the Bitcoin protocol is encrypted… It’s all open, transparent, and viewable by anyone.”

Adding to the chorus, cryptographer Ian Miers pointed out Bitcoin’s lack of privacy, likening it to a social media platform for bank accounts. “Everything you do is broadcast publicly,” he stated. “It’s the opposite of private.”

The Zcash co-founder stressed that BTC transactions rely on signatures for authentication, rather than encryption for secrecy. He further critiqued the vagueness of Musk’s statement, writing:

“Needless to say, ‘Bitcoin style’ and ‘Rust’ are not descriptions of an encryption scheme, nor are they strong indicators of security for a messaging app.”

However, several other voices supported the Tesla CEO, with some guessing that he may have meant SHA-256 hashing. Computer engineer Wei Dai also offered a charitable interpretation, suggesting that Musk might have equated “Bitcoin-style” with “peer-to-peer” or “end-to-end” encryption. However, this theory failed to clarify what encryption protocols XChat actually uses, and such ambiguity only added fuel to the fire.

Musk Under Scrutiny

The ongoing debate comes amid broader concern surrounding Musk’s leadership. Just a month ago, Tesla was forced to issue a public denial following claims by the Wall Street Journal that the electric car manufacturer was in the market for a new CEO.

This was supposedly due to investor unease over the 53-year-old’s controversial political engagements and erratic online behavior. The Tesla board responded, reaffirming its complete confidence in Musk’s leadership.

This latest episode with XChat risks further undermining the outspoken billionaire’s credibility among technologists. As pseudonymous developer Yueya.eth aptly put it: “Marketing teams love throwing around crypto buzzwords without understanding basics.” And in an ecosystem where language and accuracy build trust, the Boring Company founder’s vague phrasing may cause more confusion than hype.