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Tuesday, July 16, 2024

Dogecoin is Better Than Bitcoin for Payments, Elon Musk Declares

Elon Musk continued promoting Doge in a Time Magazine interview after being named Time’s 2021 Person of the Year

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Tesla and SpaceX CEO Elon Musk continued promoting Dogecoin in a Time Magazine interview after being named Time’s 2021 Person of the Year.

Musk compared the world’s largest cryptocurrency, Bitcoin, to Dogecoin in a Time Magazine interview, he believes that Bitcoin (BTC) is not that good for everyday payments as the meme-based cryptocurrency Dogecoin (DOGE)

Elon Musk said  – “Bitcoin is not a good substitute for transactional currency. Even though it was created as a silly joke, Dogecoin is better suited for transactions. The total transaction flow that you do with Dogecoin, like transactions per day, is much higher potential than Bitcoin”.

The Tesla CEO emphasized that Bitcoin is more suitable as a store of value, which is why its investors prefer to hold it rather than sell it or use it for payments. “The transaction volume of Bitcoin is low, and the cost per transaction is high,” Musk noted.

On the other hand, Dogecoin is not that good as a store of value, Musk hinted, noting that the cryptocurrency is “slightly inflationary” because of it’s unlimited supply. However, this “encourages people to spend, rather than sort of hoard as a store of value,” he stated.

Bitcoin, the world’s most-valued cryptocurrency with a market cap of nearly 1 trillion dollar and with the market dominance of approx 42%, was launched back in 2009 as a “peer-to-peer electronic cash system” by anonymous person known as Santoshi Nakamoto with a limited total supply of 21 million BTC. In contrast, DOGE has an infinite supply after the coin switched to provide an uncapped supply after hitting a supply limit of 100 billion coins in mid-2015.

Despite Musk criticizing Bitcoin as a payment option, his electric vehicle firm, Tesla adopted BTC as a payment method earlier this year. Tesla soon dropped Bitcoin as payment option was the company’s concerns regarding the “rapidly increasing use of fossil fuels for Bitcoin mining and transactions.” Tesla still continues to hold a significant amount of Bitcoin on its balance sheet after purchasing $1.5 billion in BTC in February.

Companies like Twitter have been actively adopting BTC as a payment option by implementing the Lightning Network to decrease transaction costs.

Bitcoin has the higher transactional volume than Dogecoin, however Dogecoin became the most searched cryptocurrency in in terms of investment. At the time of writing, Bitcoin’s daily transaction volume amounts to $31 billion, or 3.5% of its market capitalization, according to data from CoinMarketCap. Dogecoin’s daily transactions are worth $2.4 billion, or 10% of its market cap.


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