Is Elon Musk's Idea for an "Everything App" No Longer Viable in Australia? Will It Get Overtaken?

Twitter's Transformation under Elon Musk: The “Everything App”

Since acquiring Twitter and rebranding it as X in 2022, Elon Musk, the tech mogul, has been a focal point in the media spotlight, making waves with his bold decisions.

From abolishing the verified feature to enforcing bans on terms like "cisgender," Musk's ownership of the social media platform has been nothing short of intriguing.

But Musk, aged 52, isn't just tinkering with a social media platform; his vision is far more audacious: X is set to become the ultimate digital ecosystem, a one-stop shop for everything you need, powered by the revolutionary potential of cryptocurrency.

This is what he terms as an "everything app", similar to the China-based Wechat app. But what exactly does this encompass, and how does cryptocurrency factor into the equation?

From Social Media to Financial Hub

Musk's ambition is clear: X won't be just another social media platform. His vision is for an "everything app," offering a seamless integration of social interaction and financial transactions.

Imagine a platform where you can connect with friends, follow news, and conduct all your financial activities – payments, money transfers, even earning interest – without ever leaving the app. This is the future Musk envisions for X.

Christopher Stanley, X's payments chief information security officer, shed light on this ambition, expressing the goal of creating an ecosystem where users have no need to withdraw money from the platform.

This aspiration was underscored by X's acquisition of money-transmitter licence in select US states, enabling the facilitation of US dollar and cryptocurrency payments.

Cryptocurrency Integration on X

The key ingredient in this ambitious plan? Cryptocurrency.

Musk sees crypto as the future of finance, a faster, more secure, and globally accessible alternative to traditional fiat currencies.

Speculation has also swirled around Musk's intentions to integrate cryptocurrency into X, and recent developments suggest that this is indeed the case.

By integrating cryptocurrency into X's financial services, Musk aims to create a frictionless user experience. Think of it as an evolution of services like Venmo, but with the added power and flexibility of crypto.

Musk outlined several reasons behind this move, emphasising his desire for X to encompass cryptocurrency transactions alongside traditional fiat currency.

He envisions X as an "updated version" of PayPal, where he was part of the influential group of founders, with broader functionalities including support for cryptocurrency transactions.

Although PayPal already supports cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, Musk aims to take this integration further within the X platform.

Beyond Payments: A Crypto-Fueled Future

The potential goes far beyond simple payments.

Musk envisions a future where X users can use their crypto holdings to purchase goods and services directly within the app, eliminating the need for traditional payment methods.

Imagine buying a Tesla with Dogecoin or any other supported cryptocurrency – a future that's closer than ever thanks to Musk's vision.

Musk's Influence on Cryptocurrency Markets

Musk's influence on cryptocurrency markets has been profound, with his announcements and actions often leading to significant price fluctuations.

His past tweets supporting Dogecoin, a meme-based coin, caused its price to surge.

In October 2023, leaked plans from X revealed Musk's desire to build a robust financial services arm, leading crypto enthusiasts to believe it could trigger widespread adoption. This sparked surges in the prices of Bitcoin, Dogecoin, and other major cryptocurrencies.

PayPal's early adoption of bitcoin and cryptocurrency played a significant role in triggering the 2021 price surge, which sent bitcoin soaring to nearly $70,000.

His decision to allow the purchase of Tesla vehicles with Dogecoin, alongside the acceptance of Bitcoin for Tesla purchases in the US, reflects his commitment to incorporating cryptocurrency across his business ventures.

Overall, Musk's influence on cryptocurrency markets remains a potent force, with his actions and statements shaping investor sentiment and market dynamics.

X's "End Goal" Raises Concerns

However, X's ambition to keep users within its ecosystem by offering a wide range of financial services, potentially including crypto payments and interest-bearing accounts, raises concerns. If users never need to withdraw money, it could reduce overall crypto market activity and potentially harm the value of cryptocurrencies like bitcoin.

Embracing Cryptocurrency in Social Media

The integration of cryptocurrency into social media platforms like X heralds a new era of financial inclusivity and digital innovation.

By embracing cryptocurrency, Musk is not only expanding the utility of X but also accelerating the mainstream adoption of digital assets.

This bold move could pave the way for other tech giants to follow suit, ushering in a future where digital currencies are seamlessly integrated into everyday transactions and online interactions.

As Musk continues to push the boundaries of technology and finance, the impact of his vision on the cryptocurrency landscape is likely to be profound and far-reaching.

The Future is Now

X's crypto integration isn't just a pipe dream. The platform has already acquired money-transmitter licences in several US states, paving the way for real-world crypto transactions.

With Musk's influence and the ever-growing popularity of crypto, X may become a leader in this new financial frontier.

Telegram: A Strong Contender in the "Everything App" Race

However, while X has garnered significant attention for its ambitious "everything app" vision, Telegram shouldn't be underestimated in this battle.

Their recent integration of Tether, a stablecoin with a massive user base, and the TON blockchain's potential for features like in-app purchases and tokenised emojis position Telegram as a serious competitor.

Furthermore, Telegram's focus on user privacy positions it favourably against X, which has raised concerns about data collection practices.

With its established user base, innovative features, and privacy focus, Telegram is a powerful contender in the race to become the ultimate "everything app".

Twitter in Australia on the Brink of Closure

Contrary to all the optimism he has instilled for the X's future, Musk’s takeover of Twitter, which he later rebranded to X, has resulted in a significant decline for the Australian branch.

X's Australian revenue plunged more than 80% to $3.4 million in the first half of 2023. This financial statement represents its final submission before being taken private. The platform also reported a net profit of only $4804 during this period.

This decline can be attributed to several factors.

Firstly, Musk's cost-cutting measures involved reducing staff by 80% and slashing expenses across the board. This led to a significant drop in revenue due to a decrease in marketing and advertising efforts.

Secondly, the ongoing controversy with the Australian government regarding the removal of violent content, particularly the footage of the Wakeley church stabbing, further damaged X's reputation and led to advertiser pullout.

As a result of these issues, X Australia ceased all revenue-generating activities in July 2023 and is expected to be deregistered by the end of 2024.

So, what is happening now in Australia?

Australia and X Battle Over Online Safety Act

Australian regulators have been trying to hold X accountable for the spread of online hate speech.

In June 2023, the platform was threatened with fines of almost $700,000 per day for failing to comply with a notice about online hate.

Later, in October, X was fined over $600,000 for not meeting reporting requirements on combating Child Sexual Abuse Material (CSAM).

However, X has challenged these fines in court, and no payment has been made yet.

The Challenge of Geoblocking and VPNs

In an attempt to remove violent content, the Australian government mandated X to take down certain videos.

X initially geoblocked the content, making it inaccessible to Australians. However, the eSafety Commissioner argued that geoblocking was insufficient because users could easily bypass it using virtual private networks (VPNs).

The Federal Court then issued an injunction compelling X to "hide" the videos behind a label.

X's Non-Compliance and Legal Arguments

Despite the injunction, X allegedly did not comply. The platform argued that the eSafety Commissioner's demands were an overreach of authority, questioning its power to regulate content outside of Australia.

This argument highlights a complex legal issue: can Australian courts dictate what content is available on a global platform?

App Ban and Legislative Changes

The Australian government has the power to partially ban X if it fails to comply with removal notices. This could involve preventing app stores from offering the X app to new users and stopping existing users from receiving updates.

While a complete ban through web browsers is unlikely, X's potential loss of revenue from the Australian market is a significant concern.

The Fight for Regulatory Control

The ongoing battle between X and the Australian government is likely to continue. X seems willing to fight these legal battles, potentially aiming to gain notoriety and influence future regulations.

Australian lawmakers, on the other hand, are looking to strengthen the Online Safety Act and might introduce new legislation targeting online misinformation.

The outcome of this fight will determine the future of online safety regulations in Australia and how much control governments have over global social media platforms.

The Future of Social Media and Cryptocurrency: A Global Tug-of-War

The evolving saga of X, formerly Twitter, under Elon Musk's leadership presents a fascinating case study.

It highlights the potential of social media platforms to become all-encompassing "everything apps," integrating finance and social interaction. The envisioned integration of cryptocurrency into this ecosystem further fuels intrigue.

However, the Australian situation exposes a potential clash between these powerful platforms and government regulations. As X pushes the boundaries, the question of how much control governments can exert over global social media platforms remains a complex one.

The outcome of this tug-of-war will likely shape the future landscape of online interaction, financial transactions, and regulatory frameworks across the globe.