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

Security experts slam Elon Musk’s XChat claim, saying Bitcoin doesn’t use encryption and his wording is technically wrong.

XChat Launch Sparks Controversy Over Technical Claims

Elon Musk’s latest announcement about XChat, a new encrypted messaging feature for his social platform X, made waves this week but not entirely for the reasons he may have expected. On June 1, Musk posted that XChat had been “built on Rust with (Bitcoin-style) encryption.” The response from the crypto and tech community? Immediate and fiery.

What was supposed to be a rollout of a new privacy-focused product quickly turned into a debate over the accuracy of Musk’s terminology. And for many, it highlighted a deeper issue: confusing language in crypto and tech, especially when it comes from one of the most influential figures in the space.

Experts Say Bitcoin Doesn’t Use Encryption at All

Not long after Musk’s post went live, some well-known names in the crypto community started pointing out a big flaw in the claim: Bitcoin doesn’t actually use encryption.

“Bitcoin literally doesn’t have any encryption in it whatsoever,” replied Udi Wertheimer, a well-known Bitcoiner and co-founder of the Taproot Wizards project. He clarified that while Bitcoin does rely on cryptographic techniques like hashing and digital signatures which help secure transactions and verify ownership it doesn’t encrypt any of the data. All Bitcoin activity is completely public and visible on the blockchain.

Crypto Community Questions Musk’s Technical Understanding

Another respected voice, Zcash co-founder and cryptographer Ian Miers, echoed the criticism. “Everything you do [on Bitcoin] is broadcast publicly,” he wrote, comparing it to a “social media platform for bank accounts.” According to him, Musk’s description of “Bitcoin-style encryption” was not just misleading it was technically meaningless.

And the issue wasn’t just about being wrong. Critics pointed out that vague or flashy terms like this can create confusion about how privacy and security actually work in digital systems. Miers noted that saying something is built with “Bitcoin-style” encryption and in Rust isn’t really an explanation of how it’s secured especially for a messaging app that claims to prioritize user privacy.

Alternative Interpretations Fail to Clarify the Confusion

Still, some in the tech space tried to give Musk the benefit of the doubt. A few speculated that he might have meant SHA-256 hashing a key cryptographic function used in Bitcoin. Others guessed he was referring to decentralized or peer-to-peer architecture, similar to Bitcoin’s network design.

But even these interpretations fell short. At best, they revealed how unclear Musk’s wording really was. At worst, they reinforced the idea that the XChat announcement was heavy on buzzwords but light on technical substance.

Musk’s Leadership Under Fire Again

This isn’t the first time Musk has come under fire for confusing or controversial statements. Just last month, Tesla had to deny reports that it was looking to replace him as CEO amid growing concerns over his increasingly polarizing public persona.

For now, the crypto community seems more frustrated than excited. “Marketing teams love throwing around crypto buzzwords without understanding basics,” tweeted developer Yueya.eth, summing up the sentiment. In an industry built on transparency and trust, vague claims especially about security don’t go unnoticed.

Whether XChat delivers on its privacy promises remains to be seen. But one thing’s clear: if you’re going to talk about encryption in the crypto world, you better get the details right.