Elon Musk Declares Dogecoin Better For Payments Than Bitcoin
After being named the Times Person of the Year in 2021, Elon Musk continued to promote the dog in an interview with Time Magazine.
In an interview with Time Magazine shortly after being named Times Person of the Year 2021, Musk compared Bitcoin, the world’s largest cryptocurrency, to Dogecoin.
In the interview Musk said:
“Bitcoin is not a good alternative to the transaction-based currency. Although this was created as a nonsense joke, Dogecoin is more suitable for transactions. Just like everyday transactions, the whole transaction you make with Dogecoin is much more efficient than Bitcoin”.
Tesla CEO emphasises that bitcoin is more appropriate as a collection of value, so investors prefer to sell it or not use it for payments. Musk further noted that “The size of bitcoin transactions is small and the cost per transaction is high”.
Musk, on the other hand, points out that Dogecoin value accumulation is not as good and that cryptocurrency has very“small inflation”. However, he noted that it “encourages people to spend money rather than value collection”.
Bitcoin, the world’s most valuable cryptocurrency to date, was launched in 2009 as a “peer-to-peer electronic cash system” with a limited distribution of 21 million BTC. In contrast, DOGE has an infinite supply of currency after changing its currency after reaching the distribution limit of 100 billion coins in mid-2015.
Some industry luminaries, such as Ripple CEO Brad Garlinghouse, destroyed Dogecoin with its “inflatable dynamics” and unlimited supply.
Although Musk criticised Bitcoin as a payment tool, his electric vehicle company Tesla adopted BTC as a payment method earlier this year. The official reason for leaving the payment option was the company’s concern about the “rapid increase in the use of fossil fuels for bitcoin mining and transactions”. Even after buying $1.5 billion worth BTC in February, Tesla still has a significant amount of Bitcoin on its balance sheet.
Many global companies such as Twitter are actively adopting BTC as a payment option by implementing the Lightning Network to reduce transaction costs.
According to on-chain data, Dogecoin does not seem to have a larger transaction volume than Bitcoin. At the time of publishing, according to data from CoinGecko, Bitcoin has a daily turnover of $31 billion or 3.5% of its market capitalization, while Dogecoin has a daily turnover of $970 million or 4.6% of its market value.
Lately, Doge has also emerged as one of the best performing cryptocurrencies of 2021, most of which is tied to Musk’s active recognition on social media platforms.