In June 2017, Elon Musk weighed in on the debate between Bitcoin and Dogecoin. He claimed that Bitcoins fuel for mining is its scarcity—but argued that it would actually be better to use a less valuable currency like DOGE than one with more value because the lack of liquidity makes it harder to purchase goods using crypto. In spite of this assertion, many believe he has yet to accept any payment in cryptocurrency
Elon Musk, the CEO of Tesla and SpaceX, has revealed why he believes Dogecoin is better than Bitcoin. Read more in detail here: elon dogecoin.
Elon Musk, the world’s wealthiest man, reiterates his support for Dogecoin, claiming that it is a superior currency than Bitcoin.
In a two-and-a-half-hour conversation with Lex Fridman, the two discussed a variety of issues, including conquering Mars, the nature of money, and Tesla autopilot functioning. But it was Musk’s opinions on the contentious meme currency that drew the most attention.
While purists continue to criticize Dogecoin’s weak foundations, Musk transforms what is likely the currency’s worst feature into a strength.
The difficulty with Dogecoin
Dogecoin has had a year of highs and lows in 2021. While the beginning was euphoric, with $DOGE gaining an incredible 15,000 percent YTD in May, the rest was less amazing.
Since then, investors have been hunting for new opportunities. $DOGE has fallen from its May highs, finding support around $0.1573 on many occasions. However, in terms of generating any meaningful upside throughout this time, the market has been flat.
The cause, according to critics, is Dogecoin’s weak foundations. These include a lack of development and little real-world value. The limitless supply of tokens, which some claim makes $DOGE a depreciating asset, is likely the most serious critique.
Every year, nearly 5 billion new $DOGE tokens are created, according to the Motley Fool.
“Every minute, a block reward is given out. There are 600,000 new Dogecoins created every hour, 14.4 million new tokens created every day, and about 5.26 billion new Dogecoins created every year.”
The Dogecoin Foundation, on the other hand, opted to take things seriously in 2021. Plans are in place to accelerate development and introduce real-world application, notably as a payment token, with co-founder Billy Markus and Vitalik Buterin on board as advisers.
Why, in Musk’s opinion, $DOGE is a better currency than $BTC
Musk told Fridman that Dogecoin has “far larger transaction volume capabilities than Bitcoin,” which makes it superior to Bitcoin.
Musk explains this by citing Dogecoin’s cheaper transaction costs in comparison to the main cryptocurrency. As a result, while proponents of the Lightning Network might disagree, Bitcoin’s use case is confined to that of a store of value.
Nonetheless, when it comes to the question of a limitless token supply, Musk believes that having a certain degree of inflation has “some benefit” in that it stimulates spending. As a result, it performs better like a payment mechanism — as a currency should.
“[On Bitcoin] There is a reluctance to spend if a currency is excessively deflationary, or, to put it another way, if a currency is predicted to gain in value over time.”
Musk concluded by stating that although Dogecoin isn’t the perfect monetary system, it is fundamentally superior than everything else he’s seen.
Posted in: People, Memecoins
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Elon Musk, the founder of Tesla and SpaceX, has revealed why Dogecoin is better than Bitcoin. He says that it’s because it’s more democratic. Reference: elon musk cryptocurrency.
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