Elon Musk Says Dogecoin Is Better For Transactions Than Bitcoin
Elon Musk said that while Dogecoin could be inflationary, at least it is a fixed number as opposed to Bitcoin. And that¡¯s actually good because it encourages people to spend, rather than sort of hoard as a store of value.
The TIMES 2021 Person of the year, Elon Musk, has been a consistent promoter of dogecoin, which is a meme-inspired cryptocurrency. Earlier in October 2021, Musk had revealed that he has invested in Dogecoin, Bitcoin and Etherium.
But as per his recent statement, Musk is of the view that Dogecoin has an edge over Bitcoin and other cryptocurrencies and he sees dogecoin as the best cryptocurrency to transact with.
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After being given the honour by TIME magazine, Musk said that ¡°Fundamentally, Bitcoin is not a good substitute for transactional currency, and even though it was created as a silly joke, dogecoin is better suited for transactions.¡±
Musk, who is known for his cryptocurrency endorsements, keeps a close watch on the cryptocurrency space and regularly tweets about his observations as well.
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Bitcoin transaction value low, cost per transaction high
In an interview with the magazine, Musk stated that the transaction value of Bitcoin is low and the cost per transaction is high. At least at a space level, it is suitable as a store of value. But fundamentally, Bitcoin is not a good substitute for transactional currency. The total transaction flow that you do with Dogecoin, in terms of transactions per day, has a much higher potential than Bitcoin.
Elon Musk, who also overtook Amazon founder Jeff Bezos to become the world's wealthiest person this year, also said that while Dogecoin could be inflationary, at least it is a fixed number as opposed to Bitcoin. And that¡¯s actually good because it encourages people to spend, rather than sort of hoard as a store of value.
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Not a huge hater of fiat currency
Musk, who has been bullish on cryptocurrency, also told TIME that he is not a huge hater of fiat currency like many in the crypto ?world are. According to him, there are advantages with crypto relative to fiat, in that fiat currency tends to get diluted by whatever government it is. It ends up being a pernicious tax on people, especially those who have cash savings with a dilution of the money supply.
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